Cost of Troubled Obamacare Site Balloons Toward $300M

The government contract for the company that built the crash-prone website for President Barack Obama’s signature health care law has swelled from the original cost of $94 million in 2011 to $292 million by May of this year. The company with the biggest role in the rollout of the site — plagued by crashes since its Oct. 1 launch as Americans try to log on to enroll in health insurance — was the U.S. arm of Canadian company CGI, which won the contract in October 2011. Last year, the Canadian province of Ontario fired CGI and canceled a $46 million contract, accusing the company of failing to build an online medical registry on time, though CGI says it is in talks to resolve that issue. As for the Obamacare site's woes, the Obama administration says its cost grew as more states lined up for Obamacare, and concedes that the site's launch has been rockier than it had hope. Meanwhile, Republicans have called for the resignation of Health and Human Services Secretary Kathleen Sebelius, who oversees the website.

Contact Us