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Maryland Obamacare exchange spent $90 million on technology before abandoning website
The Daily Caller News Foundation ^ | April 19, 2014 | Sarah Hurtubise

Posted on 04/19/2014 5:14:06 PM PDT by Tolerance Sucks Rocks

Maryland has given up on its Obamacare website, but not before spending $90 million of taxpayer funding on technology, according to a cost breakdown released Friday.

Of the $90 million, exchange board Chairman Joshua Sharfstein said that the marketplace spent $55 million on the website itself, The Washington Post reports. Officials opted in late March, after six months of struggling with the inoperable system, to give up on fixing the website and start over again with a model of Connecticut’s more successful exchange website.

Maryland’s Obamacare exchange received millions in federal taxpayer dollars to build its Affordable Care Act website and was even awarded early innovator grants that earned it even more taxpayer funding. But the website crashed on the first day of open enrollment and officials have been unable to fix it.

The late decision won’t help anyone who hoped to sign up for health insurance on the exchange for 2014. The open enrollment period in Maryland closes Friday, with a special exception for more than 18,000 people who have already requested extra time to sign up due to the website’s problems. Sharfstein said Tuesday that the exchange will serve these customers, whether or not they get to it before the extended deadline.

Sharfstein released the exchange’s budget details Friday. Officials spent $129.8 million by March 26 to create and host the exchange as a whole, not just the website, which financial officials reported Tuesday. But the newly released breakdown reveals that technology — including the website that’s already been tossed aside — cost a whopping $91.7 million, mostly paid to Noridian Healthcare Solutions.

Maryland spent $49.9 million on the development of the exchange; $11 million for hosting the website; $3 million for maintenance; and $8.1 million on a small business exchange, which has not yet been launched.

Assorted costs outside of the massive technology budget included salaries at $6.4 million; advertising at $6.2 million; additional consultants for $3.2 million; training at $3.3 million; and a combined $13.3 million for navigators, assisters and call centers for those seeking help with the health care law and the shoddy state website.

Maryland’s contract with Deloitte will cost between $40 million and $50 million, the Baltimore Sun reports. It’s not clear where the money will come from, though, according to The Washington Post. Sharfstein has said Maryland may legally recover money from Noridian and others that built the exchange, but may also ask for even more federal grants.


TOPICS: Culture/Society; Government; News/Current Events; US: Maryland
KEYWORDS: aca; exchange; fubar; maryland; md2014; obamacare

1 posted on 04/19/2014 5:14:06 PM PDT by Tolerance Sucks Rocks
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To: Abundy; Albion Wilde; AlwaysFree; AnnaSASsyFR; bayliving; BFM; Bigg Red; cindy-true-supporter; ...

Maryland “Freak State” PING!


2 posted on 04/19/2014 5:14:36 PM PDT by Tolerance Sucks Rocks (The PASSING LANE is for PASSING, not DAWDLING)
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To: Tolerance Sucks Rocks

Way back when my company partnered with several big companies to work on these exchanges.

We didn’t win any because we weren’t cost competitive. I think our proposal was for $4-8 million.


3 posted on 04/19/2014 5:16:55 PM PDT by driftdiver (I could eat it raw, but why do that when I have a fire.)
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To: Tolerance Sucks Rocks

Not to worry! We have money to burn here in Maryland!


4 posted on 04/19/2014 5:20:08 PM PDT by NotSoFreeStater (If you choose not to decide you still have made a choice)
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To: Tolerance Sucks Rocks

How many people live in Maryland ? How much of 90 million would each person get ?


5 posted on 04/19/2014 5:24:57 PM PDT by molson209 (Blank)
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To: Tolerance Sucks Rocks
$11 million for hosting the website

This RHCE says WHAT?!
6 posted on 04/19/2014 5:29:27 PM PDT by andyk (I have sworn...eternal hostility against every form of tyranny over the mind of man.)
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To: Tolerance Sucks Rocks

PIKERS....Oregon has spent nearly $200 million and hasn’t been able to use it to sign up a single person...


7 posted on 04/19/2014 5:34:58 PM PDT by goodnesswins (R.I.P. Doherty, Smith, Stevens, Woods.)
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To: goodnesswins

That is a remarkable record of consistency!


8 posted on 04/19/2014 5:43:27 PM PDT by 17th Miss Regt
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To: Tolerance Sucks Rocks

The idiot Lieutenant Governor was placed in charge of putting together the website (his main responsibility from what I’ve seen) and has been an absolute FAILURE. Of course, the DimocRAT establishment in Maryland now wants this incompetent FAILURE to be the next governor. And he just may be—go figure.


9 posted on 04/19/2014 5:59:36 PM PDT by House Atreides
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To: Tolerance Sucks Rocks
This just goes to show you don't get much for your money nowadays.

But if it's a government contract, you usually get nothing for your money except scr*wed. The only ones who get anything are the slimy politicians who spend it and the crooks who they give it to. They make out like bandits. In fact, that's exactly what they are. Why aren't they in jail?

10 posted on 04/19/2014 6:00:19 PM PDT by Gritty (Gun controllers aren't afraid of guns but a country where the individual has power-Dan Greenfield)
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To: Tolerance Sucks Rocks

Here is the frosting on the cake. The state appointed a commission to inquire into the the screw up and they said on Friday that they could not find anyone accountable or responsible for the fiasco.


11 posted on 04/19/2014 6:05:03 PM PDT by iontheball
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To: House Atreides
"The idiot Lieutenant Governor was placed in charge of putting together the website (his main responsibility from what I’ve seen) and has been an absolute FAILURE."

But he has the politically correct amount of melanin in his epidermis so he can do no wrong. Ever.

Therefore he WILL be the next Governor of Maryland.

So let it be written, so let it be done.

12 posted on 04/19/2014 6:10:14 PM PDT by SnuffaBolshevik
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To: Tolerance Sucks Rocks; All
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13 posted on 04/19/2014 6:27:11 PM PDT by musicman (Until I see the REAL Long Form Vault BC, he's just "PRES__ENT" Obama = Without "ID")
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To: molson209

Maryland has around 5 million people, so we’d each get about 14 bucks.


14 posted on 04/19/2014 7:34:04 PM PDT by Tolerance Sucks Rocks (The PASSING LANE is for PASSING, not DAWDLING)
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To: Tolerance Sucks Rocks
maryland is THE Freak state...escape while you still can.
15 posted on 04/19/2014 9:40:32 PM PDT by ogen hal (First amendment or reeducation camp)
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To: ogen hal

I shall escape soon enough.


16 posted on 04/19/2014 9:48:58 PM PDT by Tolerance Sucks Rocks (The PASSING LANE is for PASSING, not DAWDLING)
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To: iontheball
...they could not find anyone accountable or responsible for the fiasco.

Where did you get this? Link? I would really like to follow up on this.

17 posted on 04/20/2014 7:40:42 AM PDT by foxfield (Support the Tea Party. The Tea Party supports you.)
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