Remember when proponents of Obamacare told us that government run health care models were better than private ones because they wouldn’t have to spend money on things like profit?
So far California has received $910 million in federal grants to launch its new health insurance exchange under the Affordable Care Act (“Obamacare”).
The California exchange, “Covered California,” has so far awarded a $183 million contract to Accenture to build the website, enrollment, and eligibility system and another $174 million to operate the exchange for four years.
The state will also spend $250 million on a two-year marketing campaign.
Two hundred fifty million on marketing.
Not to mention the $143 million extra to start the thing:
Privately funded Esurance began its multi-product national web business in 1998 with an initial $5.5 million round of venture fund investment in 1999 and a second round of $34 million a few months later.
I’m not sure that we’ll ever be able to fix this thing we call Obamacare. But it sure is gonna cost us if we don’t.