| 10/14/2013 @ 11:39AM |586,509 views Obamacares Website Is Crashing Because It Doesnt Want You To Know How Costly Its Plans Are Avik Roy Avik Roy, Contributor 1,049 comments, 1,019 called-out Comment Now Follow Comments 29.8k 1.6k 88 28 90 The Healthcare.gov website requires that individuals looking for coverage enter personal information before comparing plans. IT experts believe that this requirement is causing the website to crash. A growing consensus of IT experts, outside and inside the government, have figured out a principal reason why the website for Obamacare’s federally-sponsored insurance exchange is crashing. Healthcare.gov forces you to create an account and enter detailed personal information before you can start shopping. This, in turn, creates a massive traffic bottleneck, as the government verifies your information and decides whether or not you’re eligible for subsidies. HHS bureaucrats knew this would make the website run more slowly. But they were more afraid that letting people see the underlying cost of Obamacare’s insurance plans would scare people away. HHS didn’t want users to see Obamacare’s true costs “Healthcare.gov was initially going to include an option to browse before registering,” report Christopher Weaver and Louise Radnofsky in the Wall Street Journal. “But that tool was delayed, people familiar with the situation said.” Why was it delayed? “An HHS spokeswoman said the agency wanted to ensure that users were aware of their eligibility for subsidies that could help pay for coverage, before they started seeing the prices of policies.” (Emphasis added.) How Obamacares Exchanges Turned Into A Third World Experience Avik Roy Avik Roy Contributor Americans Experiencing Government Shutdown From Their Desktops Samantha Sharf Samantha Sharf Forbes Staff CMS on Obamacares Health Insurance Exchanges: Lets Just Make Sure Its Not a Third-World Experience Avik Roy Avik Roy Contributor Enrollment In Obamacares Federal Exchange, So Far, May Only Be In Single Digits Avik Roy Avik Roy Contributor As you know if you’ve been following this space, Obamacare’s bevy of mandates, regulations, taxes, and fees drives up the cost of the insurance plans that are offered under the law’s public exchanges. A Manhattan Institute analysis I helped conduct found that, on average, the cheapest plan offered in a given state, under Obamacare, will be 99 percent more expensive for men, and 62 percent more expensive for women, than the cheapest plan offered under the old system. And those disparities are even wider for healthy people. That raises an obvious question. If 50 million people are uninsured today, mainly because insurance is too expensive, why is it better to make coverage even costlier? Political objectives trumped operational objectives The answer is that Obamacare wasn’t designed to help healthy people with average incomes get health insurance. It was designed to force those people to pay more for coverage, in order to subsidize insurance for people with incomes near the poverty line, and those with chronic or costly medical conditions. But the laws’ supporters and enforcers don’t want you to know that, because it would violate the President’s incessantly repeated promise that nothing would change for the people that Obamacare doesn’t directly help. If you shop for Obamacare-based coverage without knowing if you qualify for subsidies, you might be discouraged by the law’s steep costs. So, by analyzing your income first, if you qualify for heavy subsidies, the website can advertise those subsidies to you instead of just hitting you with Obamacare’s steep premiums. For example, the site could advertise plans that “$0″ or “$30″ instead of explaining that the plan really costs $200, and you’re getting a subsidy of $200 or $170. But you’ll have to be at or near the poverty line to gain subsidies of that size; most people will either not qualify for a subsidy, or qualify for a small one that, net-net, doesn’t make up for the law’s cost hikes. This political objective—masking the true underlying cost of Obamacare’s insurance plans—far outweighed the operational objective of making the federal website work properly. Think about it the other way around. If the “Affordable Care Act” truly did make health insurance more affordable, there would be no need to hide these prices from the public. Subsidy verification created a traffic bottleneck Comparable private-sector e-commerce sites, like eHealthInsurance, allow you to shop for plans and compare prices simply by entering your age and your ZIP code. After you’ve selected a plan you like, you fill out an on-line application. That substantially winnows down the number of people who rely on the site for network-intensive tasks. The federal government’s decision to force people to apply before shopping, Weaver and Radnofsky write, “proved crucial because, before users can begin shopping for coverage, they must cross a busy digital junction in which data are swapped among separate computer systems built or run by contractors including CGI Group Inc., the healthcare.gov developer, Quality Software Services Inc., a UnitedHealth Group Inc. unit; and credit-checker Experian PLC. If any part of the web of systems fails to work properly, it could lead to a traffic jam blocking most users from the marketplace.” Jay Angoff, a former federal official at the agency that oversees the exchange, told the Journal that he was surprised by the decision. “People should be able to get quotes” without entering all of that information upfront. Weaver and Radnofsky say that the core problem stems from “the slate of registration systems [that] intersect with Oracle Identity Manager, a software component embedded in a government identity-checking system.” The main Healthcare.gov web page collects information using the CGI Group technology. Then that data is transferred to a system built by Quailty Software Services. QSS then sends data to Experian, the credit-history firm. But the key “identity management system” employed by QSS was designed by Oracle, and according to the Journal’s sources, the Oracle software isn’t playing nicely with the other information systems. Oracle hotly denies these claims. “Our software is the identical product deployed in most of the world’s most complex systems…our software is running properly,” said an Oracle spokeswoman in a statement. ‘It’s awful, just awful’ Robert Pear and colleagues at the New York Times have a piece up today detailing the serious problems with the federal exchange, problems that may get worse, not better. They confirm what we already knew: that the Obama administration refused to delay the implementation of the exchanges, despite the well-known problems, because they were afraid of the political blowback. “Former government officials say the White House, which was calling the shots, feared that any backtracking would further embolden Republican critics who were trying to repeal the health care law.” As I documented last week, IT and insurance experts have been saying for at least eight months that implementation of the exchanges was going badly, that as early as February officials were warning of a “third world experience.” The Times’ sources are just as blunt. “These are not glitches,” said one insurance executive. “The extent of the problems is pretty enormous. At the end of our [conference calls with the administration], people say, ‘It’s awful, just awful.’” “We foresee a train wreck,” said another executive in a February interview with the Times. “We don’t have the IT specifications. The level of angst in health plans is growing by leaps and bounds. The political people in the administration do not understand how far behind they are.” Richard Foster, the former chief actuary at the Centers for Medicare and Medicaid Services, said last week that “so much testing of the new system was so far behind schedule, I was not confident it would work well.” Henry Chao, the deputy chief information officer at CMS who made the “third world experience” comment, was told by his superiors that failure to meet the October 1 launch deadline “was not an option,” according to the Times. White House knowingly chose to court disaster Think about it. It’s quite possible that much of this disaster could have been avoided if the Obama administration had been willing to be open with the public about the degree to which Obamacare escalates the cost of health insurance. If they had, then a number of the problems with the exchange’s software architecture would have been avoided. But that would require admitting that the “Affordable Care Act” was not accurately named. They knew that their people on the front lines, people like Henry Chao, were worried that the exchanges would get botched. They saw the Congressional Research Service memorandum detailing that the administration has missed half of the statutory deadlines assigned by the law. But they were more afraid of the P.R. disaster of disclosing Obamacare’s high premiums than they were of the P.R. disaster of crashing websites. What you see is the result. * * * Follow @Avik on Twitter, Google+, and YouTube, and The Apothecary on Facebook. Or, sign up to receive a weekly e-mail digest of articles from The Apothecary. * * * INVESTORS’ NOTE: The biggest publicly-traded players in Obamacare’s health insurance exchanges are Aetna (NYSE:AET), Humana (NYSE:HUM), Cigna (NYSE:CI), Molina (NYSE:MOH), WellPoint (NYSE:WLP), and Centene (NYSE:CNC), in order of the percentage of uninsured, exchange-eligible Americans for whom their plans are available. Also on Forbes: 10 Cities Most At Risk To A Government Shutdown 1 of 11 Win McNamee/Getty Images Introduction + show more Introduction Thanks to the U.S. federal government facing off over spending, were in the midst of a government shutdown. Depending on how long the government shutdown lasts, local economies with a heavy concentration of federal workers will be the first to feel the effects, as those staffers face furloughs.Trulia chief economist Jed Kolko broke down the 10 cities that could be most affected, based on the percentage of total local wages that go to federal employees in the each of the 100 largest metro areas. Not all of them will be equally affected by a shutdown, of course, but it’s a reasonably proxy, he adds. 1,049 comments, 1,019 called-out Comment Now Follow Comments 29.8k 1.6k 88 90 28 Print Report Corrections Reprints & Permissions From Around the Web These 7 Things Activate Alzheimers in Your Brain These 7 Things Activate Alzheimers in Your Brain 5 Dumb Mistakes That Will Destroy Your Retirement 5 Dumb Mistakes That Will Destroy Your Retirement How New iPads are Selling for Under $40 How New iPads are Selling for Under $40 Tricks Car Insurance Agents Dont Want You to Know Tricks Car Insurance Agents Dont Want You to Know New Tech Lets You Speak a Language in 10 Days New Tech Lets You Speak a Language in 10 Days How Cruise Lines Fill All Those Unsold Cruise Cabins How Cruise Lines Fill All Those Unsold Cruise Cabins New Exercises Can Strengthen Brain New Exercises Can Strengthen Brain 3 Ways Guys Can Drop 20lbs. Quickly 3 Ways Guys Can Drop 20lbs. Quickly ? ADVERTISER VIDEO Post Your Comment Please log in or sign up to comment. Enter Your Comment Forbes writers have the ability to call out member comments they find particularly interesting. Called-out comments are highlighted across the Forbes network. Youll be notified if your comment is called out. Comments Called-Out Expand All Comments Follow Comments Dave Ryan Dave Ryan 13 hours ago Endless hyperbole without one specific example. No wonder people lose trust. I am a 55 year old male in Arizona paying $406 in AFTERTAX $ for my individual plan through a broker. Can you cite examples where people similar to me are signing up for ACA coverage costs for comparable plans that are greater than what they pay currently? Called-out comment Reply Author Avik Roy Avik Roy, Contributor 13 hours ago Your rates are acceptable because the law forces young people to pay far more to subsidize you. Congrats! forbes/sites/theapothecary/2012/03/22/how-obamacare-dramatically-increases-the-cost-of-insurance-for-young-workers/ Called-out comment Reply Charles Chambers Charles Chambers 12 hours ago Yes, you are correct. The premiums being paid by those healthy and younger (and both) are going to lower the average per-policyholder premium. That’s how insurance works. Called-out comment Reply Yao Jin Yao Jin 12 hours ago It’s also how communism works when made mandatory by the government. Called-out comment Reply jeffwtux jeffwtux 12 hours ago And since older people by and large have greater incomes, the older thpeople will be subsidizing the young people’s subsidies. Yes, I’m sure there are a few wealthy, successful young people who will be the ultimate loses. If the problems of rich young people were the USAs only problem, we would be an amazing shape. Called-out comment Reply Dave Noland Dave Noland 12 hours ago So I guess the young people who are getting sick, then going to the emergency room, passing those costs on to me, are physically responsible? Quit crying and trying to pretend that we don’t know this is political. Called-out comment Reply James Annaccone James Annaccone 12 hours ago How about all the years that our rates had to subsidize all you young brats that don’t want Ins but go to the hospital when their sick, on our dollar. Grow up son, just because you have a gift to write does not mean there is any brains behind your words. Oh I forgot, its not about truthfulness, it’s about making a Buck and doing or saying anything to get it. Called-out comment Reply Terry Calk Terry Calk 12 hours ago Were you not able to answer his specific question or merely proving his point that you could not provide a single specific instance to support your hypothesis? Called-out comment Reply Yao Jin Yao Jin 12 hours ago @Jeffwtux, wrong. Older people have greater “wealth.” Income may be correlated with seniority, but not age. While age and seniority are correlated, the degree is only moderate. Further, younger people tend to participate in more lucrative industries while older people tend to suffer from career maladies due to skill erosion and age discrimination. Called-out comment Reply Michael Michael 12 hours ago Oh Avik, calm down. Aren’t you getting tired from all your “outrage” over ACA. It’s the law. Deal with it. Called-out comment Reply 1 2 3 4 5 6 7 … 102 Follow Comments Most Read on Forbes News People Places Companies Obamacares Website Is Crashing Because It Doesnt Want You To Know How Costly Its Plans Are +584,320 views 5 Things Super Successful People Do Before 8 AM +84,155 views Who Is The Smallest Government Spender Since Eisenhower? Would You Believe Its Barack Obama? +71,638 views Top 100 Inspirational Quotes +40,425 views On Labor Day 2013, Welfare Pays More Than Minimum-Wage Work In 35 States +37,432 views The Burden Of Realism In Grand Theft Auto 5 +30,830 views Xbox One Vs. PS4: The Top 10 Next-Gen Video Games +28,862 views 6 Ways To Immediately Get Noticed At Work Without Self-Promotion +28,043 views 14 Things Successful People Do On Weekends +26,174 views 20 Things 20-Year-Olds Dont Get +18,527 views + show more (contributor_data.name)!?html The Apothecary, With Avik Roy Insights into health care and entitlement reform. Follow (182) + show more The Apothecary, a blog about health care and entitlement reform, is edited by Avik Roy, a Senior Fellow at the Manhattan Institute for Policy Research and a former health-care policy adviser to Mitt Romney. Avik also writes a weekly column on politics and policy for National Review. The other contributors to The Apothecary are: Josh Archambault, Director of Health Care Policy at the Pioneer Institute in Boston; Robert Book of the American Action Forum; Chris Conover, Research Scholar in the Center for Health Policy and Inequalities Research at Duke University and an Adjunct Scholar at the American Enterprise Institute; Nicole Fisher of the University of North Carolina; John R. Graham of the Advanced Medical Technology Association; and Jeet Guram of Harvard Medical School. Our Writers Avik Roy Chris Conover Jeet Guram John R. Graham Josh Archambault Matthew Herper Nicole Fisher Paul Howard Robert Book The Apothecary, With Avik Roy’s Popular Posts Rate Shock: In California, Obamacare To Increase Individual Health Insurance Premiums By 64-146% 1,482,472 views Obamacare Will Increase Health Spending By $7,450 For A Typical Family of Four [Updated] 593,650 views Obama To Labor Unions With Multi-Employer Health Plans: Drop Dead 590,354 views Obamacares Website Is Crashing Because It Doesnt Want You To Know How Costly Its Plans Are 586,398 views Yet Another White House Obamacare Delay: Out-Of-Pocket Caps Waived Until 2015 531,194 views More from The Apothecary, With Avik Roy Real-Time News on Forbes Scan the latest news and headlines in a single stream. Get ahead of the pack here »
Posted on: Tue, 15 Oct 2013 06:04:20 +0000
Trending Topics
Recently Viewed Topics
© 2015