Obamacare | The Government's Takeover of Health Care
After Wasting Millions of Dollars, Cover Oregon Calls it Quits
Created on Thursday, 08 May 2014 08:34
Written by Darrell Lect
Cover Oregon is the state's version of Obamacare. From the start, the program is been beyond failure, spending almost $150 million to build the state's online exchange. The website doesn't even work - it's a taxpayer money pit. Even after spending millions on propaganda for Obamacare in Oregon, the state has realized that it can't waste anymore money and is putting the federal government in charge of creating a new exchange.
Cover Oregon was touted as a success story by the Obama regime early on, despite it being anything short of successful. It's a prime example of what happens when you put the government in charge of creating something it has no knowledge of.
From FOX News:
Cover Oregon on Friday became the first casualty of the state-run ObamaCare exchanges, as officials formally gave up the fight to offer residents a state health care portal. Instead, Oregon, which has been hemorrhaging millions of dollars on a barely functioning website that has failed to sign up a single person, is turning to the federal government for an out.
Cover Oregon’s full board approved the recommendations made Thursday by an advisory committee to fold its troubled portal and use the federal HealthCare.gov for private policies.
The state initially paid $134 million to Oracle Corp. to build its online exchange. Cover Oregon also spent more than $3 million on marketing the site, which included radio, television and YouTube ads, spokeswoman Ariane Holm told FoxNews.com last year.
Cover Oregon received a month-long enrollment deadline extension because of multiple technical glitches in its system.
But fixing the existing system, Cover Oregon officials say, would have meant pouring another $78 million into the growing money pit. Switching to the federal system significantly reduces the cost to around $5 million.
“I guess I am still saying ‘I told you so,’” said former Oregon Rep. Patrick Sheehan on Fox News. “There is a culture of cover up that goes all the way up to the governor’s office.”
Sheehan says there were multiple times throughout the year when the state could and should have, in his opinion, opted for less expensive ways to tackle the costs associated with building and sustaining a state exchange.
“I found out there was other software that we could have licensed instead of building our own,” he said.
It is still unclear how the state might be able to recoup its exchange funding -- if at all. Cover Oregon was partially financed by a 2.5 percent premium tax on insurers selling the exchange, Cover Oregon technology chief Alex Petit said Thursday.
Petit says he’ll meet with federal health officials early next week to iron out all of the financial details.
Oregon’s exchange, which was touted by the Obama administration in the beginning as a success story, quickly proved otherwise. It was widely seen as the worst of more than a dozen states that developed their own online health insurance marketplaces.
The Oregon exchange – like the ones in Maryland and Massachusetts -- have been hit hard by technical glitches that have made signing up difficult for consumers.
Darrell Lect is a contributing editor for Habledash.