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Obama Administration Fails to Answer Questions on True Cost of Implementing Obamacare
Contracts for the two main contractors responsible for Healthcare.gov have more than doubled since being originally awarded in September 2011
Dec 17 2013
WASHINGTON, D.C. – The U.S. Department of Health and Human Services (HHS) has failed to provide straightforward answers to questions about the costs of implementing the Affordable Care Act (ACA) health insurance Exchange. Seven weeks after U.S. Senator Jerry Moran (R-Kan.) – Ranking Member of the Senate Appropriations Subcommittee on Labor, Health and Human Services and Education – sought answers from HHS on the cost of the failed Obamacare roll out, the Department responded with vague and incomplete answers to appropriate questions including how much the President’s “tech surge” is costing taxpayers and whether the Healthcare.gov website was adequately tested before it was rolled out.
“Without approval from the Appropriations Committee, HHS continues to spend more taxpayer dollars on Obamacare implementation. In doing so, HHS has increased contract awards to the very contractors HHS themselves blamed for the dysfunctional Healthcare.gov website,” Sen. Moran said. “Problem solving and a functional government requires understanding, accountability and inter-branch cooperation. The Department’s long overdue and completely lacking responses to Congressional inquiry undermine both. HHS must provide Congressional committees of jurisdiction adequate information about the costs of ACA delays, federal Exchange implementation, and the ongoing technical ‘glitches’. With so much as stake, Congressional oversight and cooperation from the executive branch is needed to address the Obamacare chaos at HHS.”
In HHS’ response to Sen. Moran’s questions, it was revealed that:
- HHS has obligated $677 million for the federal Exchange infrastructure through October 31, 2013;
- Contracts for the two main contractors responsible for the failed Healthcare.gov website have more than doubled since being originally awarded in September 2011. HHS refused to state why the contractors were selected in the first place, what their qualifications are, and what specific projects they are responsible for;
- Quality Software Services Inc. (QSSI), which built the Data Services Hub, has had its contract increased from $30 million to $84.5 million; and
- CGI Federal, which helped build and continues to support the IT systems of the Federally-facilitated marketplaces, has had its original $56 million contract increased to $197 million.
- HHS will not hold the contractors responsible for developing a non-workable product because the government “is obligated to pay the contractor their allowable incurred costs plus a fixed fee;”
- HHS refuses to specify the cost breakout for fixing the technical issues associated with the Exchanges; and
- HHS refuses to outline the specific steps taken to test the Healthcare.gov website prior to the roll-out on October 1, and instead simply states that the system was tested for functionality.
Click below to read HHS’ full response to Sen. Moran’s questions.
Click here to read Sen. Moran’s original October 24th letter to Sec. Sebelius.
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Sen. Moran Statement on Ryan-Murray Budget Plan
Dec 17 2013
WASHINGTON, D.C. – U.S. Senator Jerry Moran (R-Kan.) released the following statement today regarding the Ryan-Murray budget plan:
"I appreciate the efforts of Rep. Paul Ryan and Sen. Patty Murray to work together in an attempt to get our spending under control. Unfortunately, the final agreement falls far short of making the meaningful spending reforms we need to address our out-of-control debt and deficit.
"The Bipartisan Budget Act of 2013 replaces sequester spending cuts with a spending increase of $63 billion over two years, split between defense and non-defense programs. This increased spending is paid for through increased aviation fees, changes in retirement pay for the Armed Forces, and the promise of future mandatory spending reductions – much of which will take place a decade from now.
“What remains missing from this agreement is a genuine effort to address the real cause of our debt problems: mandatory spending. As long as the solvency and unfunded liabilities of Social Security and Medicare remain ignored in favor of minor tweaks to discretionary spending, our budget crisis will never go away.
"While I didn't vote for sequestration, the reality is it forced Washington to acknowledge the hard truth of our spending and set budget caps. It is disappointing to see Congress change the law to increase spending now while delaying further spending cuts until many years in the future. With the national debt soaring above $17 trillion, we should not allow ourselves to – yet again – postpone responsible fiscal policy.”
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Senator Moran Hosts 1000th Town Hall Meeting
Dec 17 2013
Moran, Udall Urge Overhaul of Federal IT Oversight to Save Taxpayers Billions of Dollars
Bipartisan bill would increase accountability, ensure clear chain of command in federal IT process
Dec 17 2013
WASHINGTON – Today, U.S. Senators Jerry Moran (R-KS) and Tom Udall (D-N.M.), both members of the Senate Appropriations Committee, introduced a bipartisan bill that would require the first major overhaul of the government information technology (IT) procurement process in over a decade. The senators urged quick action on IT reform, announcing their bill as President Obama met with executives from tech firms to discuss ways to improve the functioning of the health care website, HealthCare.gov.
The legislation would help modernize the government’s computer and technology systems, which in some cases lag far behind the private sector. In the process, the bill would also cut waste to save billions in taxpayer funds and prevent management and accountability problems that have plagued various federal IT initiatives, most recently HealthCare.gov.
“Americans want an efficient and effective government. As I’m sure President Obama and White House officials heard this morning from technology executives, reforms to and increased oversight of our federal IT procurement process is critical to achieving this goal,” Moran said. “The systemically-flawed rollout of HealthCare.gov is one high-profile example of IT procurement failures, but numerous more projects incur cost overruns, project delays and are abandoned altogether. These examples of waste come at a cost of billions of dollars to American taxpayers. Our bill will help the federal government transition into the 21st Century in a fiscally responsible fashion by optimizing its use of IT.”
"The federal government needs to be able to build cutting-edge, 21st century computer systems, but right now we are hobbled by laws written in the days of floppy disks and telephone modems,” Udall said. “We have an urgent need to modernize the law and especially to incorporate flexibility and accountability. I want to make sure that in the 21st century, citizens can depend on the web to interact with their government – especially when it comes to something as serious as health care insurance or taxes. As chairman of the Financial Services and General Government Appropriations Subcommittee, I look forward to continuing to work for reforms with my colleagues on both sides of the aisle."
Each year, the federal government spends about $80 billion on information technology. According to the Government Accountability Office (GAO), at least 154 major federal IT investments totaling $10.4 billion are at risk and in need of management attention. GAO has also found that federal IT reforms such as empowering Chief Information Officers (CIOs), consolidating federal data centers, and transitioning to cloud computing services could save billions of dollars.
In July, the GAO detailed a number of problems with IT initiatives and recommended the Office of Management and Budget (OMB) work with federal agencies to better and more effectively implement the programs to save taxpayers billions of dollars. The report is available here.
Moran and Udall’s bill seeks to implement many of the GAO's recommendations and eliminate duplication and waste in federal information technology acquisition and management, in part by:
- Ensuring accountability by empowering federal CIOs, elevating their role in civilian agency budget planning processes, and increasing their ability to optimize how agencies use IT.
- Improving the transparency and expanding the scope of the OMB public website, the IT Dashboard, for federal IT spending.
The bill is cosponsored by Senator Mike Johanns (R-NE), who serves with Udall and Moran on the Senate Appropriations Committee. U.S. Reps. Darrell Issa (R-CA) and Gerry Connolly (D-VA) have introduced similar legislation in the U.S. House of Representatives.
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WASHINGTON, D.C. – U.S. Senator Jerry Moran (R-Kan.) released the following statement today on the one-year anniversary of the tragedy in Newtown, Conn.:
“Today I am taking time to remember the Newtown tragedy and those who were affected in body, mind, and spirit on that horrific day. Like many Americans, I feel a profound heartbreak that drives all of us to seek answers and a way to prevent that horror from returning.”
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WASHINGTON, D.C. – U.S. Senator Jerry Moran (R-Kan.) released the following statement today after learning a national security arrest was made in Wichita, Kan.:
“We are grateful for the law enforcement officials who kept individuals, including many Kansans, safe today. This incident is a reminder that we must remain vigilant and reaffirm our commitment to protecting this country and its ideals from those who wish to do us harm.”
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Sen. Jerry Moran Authors Senate Resolution Congratulating Sporting Kansas City on MLS Cup Win
Dec 13 2013
WASHINGTON, D.C. – U.S. Senator Jerry Moran (R-Kan.) authored a resolution, introduced
last night with U.S. Senator Pat Roberts (R-Kan.), extending the Senate’s congratulations to Sporting Kansas City for an outstanding 2013 season of Major League Soccer and for winning the 2013 Major League Soccer Cup. The Senate is expected to pass the resolution by unanimous consent this week.
"Sporting KC’s 2013 MLS Cup victory was an exciting moment in Kansas City’s already rich soccer history,” Sen. Moran said following the resolution’s introduction. "The club’s success, the world class Sporting Park, and the community’s enthusiastic support combine to make Sporting KC a premier MLS club and Kansas City one of America’s great soccer cities."
The resolution reads, "the Senate—recognizes and extends congratulations to Sporting Kansas City for winning the Major League Soccer Cup 2013; and commends the players, manager, coaches, owners, support staff, and club supporters whose efforts and spirit made the 2013 season a historic success."
Click here to view the full text of the resolution.
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