Although, come to think of it, it certainly wouldn’t be the only government program to resemble that illustrious undertaking in Boston:
The Big Dig was the most expensive highway project in the U.S. and was plagued by escalating costs, scheduling overruns, leaks, design flaws, charges of poor execution and use of substandard materials, criminal arrests, and one death. The project was originally scheduled to be completed in 1998 at an estimated cost of $2.8 billion (in 1982 dollars, US$6.0 billion adjusted for inflation as of 2006). However, the project was completed only in December 2007, at a cost of over $14.6 billion ($8.08 billion in 1982 dollars, meaning a cost overrun of about 190%) as of 2006. The Boston Globe estimated that the project will ultimately cost $22 billion, including interest, and that it will not be paid off until 2038.
Get used to it, if you weren’t already. They don’t say “good enough for government work” for no reason:
The biggest problem with Healthcare.gov seems simple enough: It was built by people who are apparently far more familiar with government cronyism than they are with IT.
That’s one of the insights that can be gleaned from the work done by the Sunlight Foundation Reporting Group, a Washington, D.C.-based nonprofit that focuses on government transparency. In a report filed this past week, the group examined why the system broke as horribly as it did: The contracts awarded to those who built it were, by and large, existing government contractors with “deep political pockets.”..
Why did they get the work? The report hints at a likely reason: The companies were big lobbyists, with “some 17 contract winners reported spending more than $128 million on lobbying in 2011 and 2012.” Granted, some experience with government work is vital for any contractor, and the federal procurement system is geared to favor those already doing government work, but Sunlight pointed out that the list tips heavily toward those with both existing contracts and political leverage…
One…name in particular on the contractor list probably won’t be familiar to readers, but ought to be from now on: Science Applications International Corp., or SAIC. Nominally a defense contractor, SAIC has been involved with many government projects with ghastly end results, such as New York City’s fraud- and corruption-riddled $600 million CityTime payroll software boondoggle.
But many problems with the website were not the fault of incompetent contractors. One of the main difficulties, the sign-in process and the fact that an account must be created before a person can browse programs and prices, was intentional (although I doubt they meant it to be quite as awful as it has turned out). But there actually was a reason they made people sign in and be verified before they could get price quotes, and the reason was not a trivial one, although the whole thing underscores the problems with Obamacare and the federal government in general: they figured that if they allowed people to shop around and look at prices before their income level and eligibility for subsidies had been verified, too many viewers would see the real (that is, unsubsidized) prices and freak out at the cost. The government wanted lower-income people to only see the prices they’d actually be paying, with the government (in other words, the taxpayers and/or Obamacare subscribers with more money than they) footing the rest of the bill. So the real price of Obamacare would be hidden.
It’s exactly the opposite of discount stores where they proudly display the original price so you can see just how much it’s been marked down and feel that you’re getting a huge bargain. Of course, in that case, the consumer is free to accept or reject the product, taxpayers aren’t subsidizing the shopper, and the original price may even be inflated to make the buyer think the deal is even better.
But the point of the Obamacare site was to be, if not exactly duplicitous (after all, the subsidized price is in fact what a person getting a subsidy would actually pay), then certainly to be secretive about the bigger picture of cost. But one of the hallmarks of Obamacare has been this speed and secretiveness, so why would that change now?
Even Ezra Klein has interviewed a guy who noted it (Robert Laszewski, president of Health Policy and Strategy Associates):
One thing the Obama administration has been really paranoid about is rate shock. When someone like me says there’ll be rate shock they say you have to net out the subsidies. That is a fair point. But I think what happened was when they designed their system they were so paranoid about that that they wanted to make sure people browsing got the lowest price. That required signing in so you could see subsidies. And my theory is that’s why they went to the architecture they did even though the IT systems people wanted to go another way.
So not only are the problems no simple glitch, but they are only partly the fault of the IT people. Some of this is the fault of big government itself, and why so many people hate it. But in this case the Obama administration had political goals above all else, and they sacrificed efficiency and openness to them. This, of course, is not news.
[NOTE: Another bonus of the way the website was designed was to maximize the amount of information the government could glean about even casual browsers. The way the Obamacare website is set up, there are no casual browsers.
And to be fair, the government may also have feared that if people saw the unsubsidized prices first, they run screaming from the site and never return. This, of course, would spell doom for Obamacare, since it depends on a lot of young and healthy people enrolling.]






