The cost of building the Obamacare website has reached $2.1 billion, according to government figures obtained by The Associated Press.
The figure is far higher than the $94 million the Obama administration had initially disclosed for the cost of developing and launching HealthCare.gov, which serves as the online home for health insurance exchanges run by states and the federal government.
The AP got the revised figure from two people familiar with the process who spoke on condition of anonymity because they were not authorized to discuss it publicly.
The $2.1 billion also includes money paid to contractors, software and hardware developers and technical support staff, but not money paid directly to insurers or medical companies that have helped users find coverage through HealthCare.gov and state-run sites
Cost to build obamacare website
The Affordable Care Act is the most sweeping healthcare reform legislation in decades. But even before it was signed into law, its cost was a point of contention.
The ACA is projected to reduce the federal deficit by $124 billion over 10 years, according to the Congressional Budget Office (CBO). The CBO also says it will increase health insurance premiums for some small businesses and individuals. But many provisions are expected to reduce overall costs, including tax credits that subsidize premiums for low-income families.
How much will Obamacare cost?
The Obama administration estimates that the Affordable Care Act will cost $1.76 trillion over 10 years. That includes subsidies for low- and moderate-income people who buy private insurance through state exchanges, expansion of Medicaid eligibility and some other provisions.
The CBO estimates that the ACA will reduce the deficit by $124 billion over 10 years because it expands coverage while also cutting Medicare spending by $716 billion and raising taxes on wealthy people and corporations by $569 billion.
The average cost of the Affordable Care Act per person is $1,041. That’s for a family of four, though. If you’re single, the average cost will be about $481 per year.
The Congressional Budget Office estimates that the ACA will reduce the deficit by $109 billion from 2010 to 2019, and by $1.2 trillion from 2010 to 2021.
To be eligible for health insurance under Obamacare, you must purchase a qualifying plan through an exchange or marketplace by March 31, 2014 (or find an alternative).
The penalty for not having health insurance in 2014 is 1% of income or $95 per adult (up to a maximum of $285 per family). The penalty increases in 2015 and 2016 as follows:
$325/adult/$162.50/child in 2015
$695/adult/$347.50/child in 2016
The cost to build the Obamacare website has been a point of contention for some time.
The government has not released an official figure for the cost of building HealthCare.gov, but estimates have varied widely. The New York Times reported that the federal government spent about $600 million total on the development of HealthCare.gov and state exchanges — though some experts have said that number is far too low.
A report from Republican investigators in the House of Representatives estimated the cost at $840 million, which would be more than double what the administration has said it cost to build HealthCare.gov and state marketplaces combined.
But other estimates were even higher. Forbes claimed that there were “at least 29 contractors with contracts worth more than $1 million each” working on HealthCare.gov alone, which would put its total cost at over $2 billion — or nearly $1 billion more than what officials have claimed so far.
The Department of Health and Human Services has said that it will not release detailed information about how much it spent building HealthCare.gov until next year, citing security concerns related to ongoing litigation over whether members of Congress should be able to see those documents as part of their oversight responsibilities — though some members have said they
The Affordable Care Act, better known as Obamacare, is a massive piece of legislation that has changed the health care landscape in America. One of its more controversial features is the creation of new state-based marketplaces for purchasing health insurance.
The federal government has been charged with building these marketplaces, called exchanges. The first open enrollment period was rocky and remains controversial, with many Republicans arguing that the Obama administration spent too much money on building a website that doesn’t work well.
The HHS Office of Inspector General has reviewed the costs of building HealthCare.gov, and concluded that it cost $634 million less than initially budgeted. That’s actually an important finding because it shows that even though there were significant problems with the site’s launch, they weren’t caused by lack of funding or overspending.
How much did HealthCare.gov cost?
The Department of Health and Human Services originally budgeted $93 million for developing HealthCare.gov and related systems in 2013 (this includes both the federal exchange system for 36 states plus those states’ own exchanges). But after some early problems discovered during testing, HHS officials decided to delay the launch until October 2013 rather than September as originally planned — which meant reopening bids from contractors
The federal government has spent more than $1 billion on the troubled Obamacare website, Healthcare.gov, according to a new report.
The Department of Health and Human Services refused to release how much it spent on the project, but Congress obtained internal documents revealing that the site cost $834 million through March 31, Politico reported Monday.
That figure doesn’t include “any additional costs borne by other agencies that have helped with the website,” Politico noted.
The price tag for the site will likely climb even higher as the Obama administration continues to fix glitches in its functionality and security issues with the database behind it. The website was supposed to be functional by Oct. 1 but didn’t go live until Oct. 1 — and even then, it was riddled with problems that prevented many people from signing up for health plans via the site.
The administration said Sunday it has enlisted an outside firm to help stabilize Healthcare.gov as officials work to improve its performance for consumers who want to shop for insurance under Obamacare’s new exchanges starting Nov. 15
Buy obama care
Obamacare costs will vary by state and by plan. Premiums for bronze plans (the cheapest) will be between $130 and $300 per month, while silver plans will cost around $250 to $450. The more comprehensive gold plans will run you $400 to $600 monthly, with platinum plans costing upward of $500.
Obamacare subsidies are based on your income, which means that people who make less money can get better deals than those who earn more. People who earn 100 percent to 400 percent of the federal poverty level ($11,490 – $45,960 for an individual) can qualify for subsidies that reduce their cost-sharing expenses significantly — as much as 6.4 million people are expected to benefit from discounted coverage in 2014 alone.
Obamacare is a comprehensive term used to describe the Patient Protection and Affordable Care Act, or PPACA. It is sometimes referred to as the Affordable Care Act (ACA). The law was signed into law on March 23, 2010 by President Barack Obama.
The goal of the ACA was to make healthcare and insurance coverage more affordable for Americans, especially those who do not have access to employer-sponsored health insurance. The plan also aimed to reduce the number of uninsured Americans by expanding Medicaid coverage and creating new state-based health insurance exchanges. The individual mandate was also included in this legislation, requiring all Americans to have health insurance or pay a fine.
The Affordable Care Act, or Obamacare, is a federal law that requires most Americans to have health insurance coverage. The goal of the law is to make health care affordable and accessible to everyone.
The ACA offers many benefits to consumers:
Guaranteed issue: Insurers cannot deny coverage or charge more because of pre-existing conditions.
No lifetime limits on coverage: Insurers must stop limiting how much they will pay for your care in a year.
Choice of plans: You can choose from a variety of plans, including HMOs and PPOs, each with different costs and levels of coverage.
Lower out-of-pocket costs: Under the ACA, people with low incomes can qualify for tax credits that reduce their monthly premiums and out-of-pocket costs such as deductibles and copayments.
Medicaid expansion: The Medicaid program has been expanded in some states so that more low-income adults who don’t have children can qualify for coverage.
Obamacare, or the Affordable Care Act (ACA), has two main components:
1. An individual mandate to purchase health insurance and pay a penalty if you don’t purchase it.
2. Subsidized government-run exchanges with premium tax credits for eligible individuals who can’t afford coverage on their own.
The law also includes several other provisions such as expanding Medicaid (the government program that covers low-income people) to everyone up to 133% of the federal poverty level, prohibiting insurers from denying coverage based on pre-existing conditions, and allowing children under 26 years old to stay on their parents’ plans.
Obamacare, also known as the Affordable Care Act (ACA), is a healthcare reform law passed in 2010 that was designed to make health insurance more affordable and accessible for Americans.
In 2019, there were two major changes to Obamacare:
The individual mandate – which required people to have health insurance or pay a tax penalty – was eliminated. This means that young adults can now stay on their parents’ health insurance plans until they’re 26 years old (instead of turning 21).
The cost-sharing reduction (CSR) payments were eliminated. CSRs lowered deductibles and copays for lower-income Americans who purchased silver plans through the marketplace. Without these payments, insurers had to raise premiums on silver plans by an average of 37%.