The federal government has spent a whopping $5 billion on the Obamacare exchanges, and they aren’t done yet. There’s a section in the law allowing for the Dept. of Health and Human Services to have “indefinite” funding, so basically they’ve been written a blank check.
“The Centers for Medicare & Medicaid Services (CMS) is incurring significant administrative costs to support [federally-facilitated exchanges] FFE operations,” the report, which was released earlier this month, said.
According to CMS, the government spent $456 million to support “exchange operations” between fiscal years 2010 and 2012, before the law went into effect. In 2013 the government spent $1.545 billion for administrative costs associated with the exchanges, and expects to spend an additional $1.390 million this year. The agency has requested another $1.788 billion for 2015.
The law enabled HHS to distribute multiple grants to states to plan and establish exchanges. Initial planning grants were valued at $1 million, though multiple rounds of “exchange establishment grants” cost much more, totaling $4.6 billion.
Every state and D.C. received planning grants except Alaska, which did not apply.
The government also provided $249 million for “early innovator” grants for states creating their own exchanges. (Read More)