Uh-Oh! Building ObamaCare’s Health Exchanges Has Already Cost Double the Expected Amount

Credit: WhiteHouse.govHere’s another ominous sign for ObamaCare’s future: The Department of Health and Human Services admitted yesterday that setting up the law has cost twice as much as expected so far. And you can't really blame Republican opposition for the overrun: That’s just accounting for the cost of building exchanges in states that said they want to run them.

Here’s The Hill with the report:

The Health and Human Services Department (HHS) said in budget documents Wednesday that it expects to spend $4.4 billion by the end of this year on grants to help states set up new insurance exchanges. HHS had estimated last year that the grants would cost $2 billion.

The department also is asking Congress for another $1.5 billion to help set up federally run exchanges in states that do not establish their own.

Just because HHS is asking for the money, of course, doesn’t mean it’s going to get it. So if not, then what? The HHS has promised it will, er, do something—something!—to make it all work. But it won’t say what. At least not yet:

HHS Assistant Secretary for Financial Resources Ellen Murray punted Wednesday when asked about the consequences if Congress also denies the new request.

The department is "determined to make them work," she said of the exchanges.

A big chunk of the grant money doled out so far went to California. It has reportedly received $909 million in federal funding to build its exchange. But even with the hefty funding it's not going smoothly. The state's insurance regulators have warned that residents should expect "rate and market disruption" when the state's health insurance exchange opens. 

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Sebelius: ObamaCare Rollout Tougher Than White House Expected

Health and Human Services (HHS) Secretary Kathleen Sebelius said Monday that she did not anticipate how complicated implementing the president's signature healthcare law would be.

"The politics has been relentless and that continues," Sebelius said, according to Reuters. "There was some hope that once the Supreme Court ruled in July, and then once an election occurred there would be a sense that, 'This is the law of the land, let's get on board, let's make this work.' And yet we will find ourselves having state-by-state political battles."

Speaking to students at the Harvard School of Public Health, Sebelius said implementation had been hampered both by the law's slow roll out and red-state governors and legislators who have rejected state-run insurance exchanges. 

"It is very difficult when people live in a state where there is a daily declaration, 'We will not participate in the law,' for them to figure out whether they are going to benefit," Sebelius said.

The HHS secretary said her department was "closely" monitoring state progress on the exchanges and Medicaid expansion, both set to debut at the beginning of October.

“We are doing a lot of very active one-on-one conversations with states around the country,” she said. “It’s a big lift, and I would say it’s a job that no one has ever done in this country before — not to put too fine a point on it.”

Sebelius also defended the law from criticism that health insurance premiums could rise because of the requirements under the Affordable Care Act. Last month, Sebelius became the first Obama administration official to acknowledge that insurance premiums could increase under the law. But Monday, the HHS secretary argued competition would benefit Americans as they sought a healthcare provider.

"For the first time ever in the history of the United States, they'll have to compete for service and customers, not by cherry-picking the market [and] trying to figure out who can only insure people who promise never to get sick," she said.

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Former Rep. Jackson Jr. expected to plead guilty to campaign violations

Former Rep. Jesse Jackson Jr. (D-Ill.) is expected to plead guilty to illegally spending $750,000 worth of campaign funds, according to multiple reports.

Jackson could go public with the plea deal as early as Friday.

Jackson, who resigned from Congress in December, could face as much as 57 months in jail for making personal purchases with the campaign funds. Those purchases include an expensive Rolex watch, memorabilia previously owned by a number of celebrities, furnishings for his home and fur coats.

Jackson has reportedly been in talks with federal investigators over a plea agreement to reduce his jail time.

He is also expected to have to pay a fine as part of the agreement.

Jackson currently faces multiple charges, including giving false statements to federal officials and conspiracy.

Former Chicago Alderwoman Sandi Jackson (D-Ill.), Jackson's wife, is also expected to plead guilty to tax violations. She resigned from office in January citing "health matters." 

The former congressman, prior to resigning from Congress, admitted that he was receiving treatment for severe bipolar disorder and cited his ongoing battle with depression as a reason for stepping down from Congress.

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