March 19,2015

Press Contact:

Aaron Fobes, Julia Lawless (202) 224-4515

Five Years Later: Five Egregious Abuses of Taxpayer Dollars

WASHINGTON – Five years after the President’s signature domestic policy was signed into law, taxpayers have been left on the hook for billions of dollars that were doled out for Obamacare to states, corporations, and contractors with limited to no accountability. Here’s a look at five major misuses of taxpayer funds:

 1.     Failed State Exchanges

According to the Congressional Research Service, over one billion taxpayer dollars have been wasted on state exchanges that have failed.


 2.     Consumer Oriented & Operated Plans (co-ops)

The Centers for Medicare & Medicaid Services (CMS) has loaned $2.4 billion to 24 co-ops, one of which failed before it enrolled anyone.  Taxpayers are set to lose more than $1 billion of this money from default, and about half from artificially low interest rates.  CMS has not made any plans to recoup any of the funds. 


 3. Website

The Obama Administration’s website became a pre-existing condition for many Americans that were forced to purchase insurance on the broken site or face a fine. Despite fixes to, security concerns remain. According to reports, the total cost of the failed enrollment system surpassed $2 billion. 


 4.     Serco

The contractor was awarded a $1.2 billion to manage paper applications during the first enrollment period of the health care law, according to reports.  However, only a handful of the total applications received were paper applications, leaving Serco employees little to do.  The waste was so apparent that a whistleblower who worked at the company reached out to the St. Louis Post-Dispatch.  “I feel guilty for working there as long as I did,” she said. “It was like I was stealing money from people.” 

PRICE TAG:  $1.2 BILLION                      

 5.     Marketplace Navigators

The Administration has spent over $120 million on the Navigator program for the 2014 and 2015 open enrollment periods.  The purpose of navigators is to provide individuals with information about health insurance, including signing up for the Health Insurance Marketplace.  The Kaiser Family Foundation (KFF) estimates 2015 marketplace enrollment at approximately 11 million individuals. The overall value of the Navigator program is yet to be determined – at best inconclusive, at worst, more wasted taxpayer dollars. 

PRICE TAG:  $120 MILLION