Benefits and Compensation

Various Problems with State-Run Healthcare Marketplaces, GAO Reports

The U.S. Government Accountability Office (GAO) recently released a report on the state of the states’ information technology (IT) projects supporting health insurance marketplaces. It appears that there’s still a ways to go before everything is fully up and running.

As of March 2015, states reported to the Department of Health and Human Services’ (HHS) Centers for Medicare & Medicaid Services (CMS) that they spent about $1.45 billion in federal marketplace grant funding on IT projects supporting health insurance marketplaces. The majority of this spending (nearly 89%) went towards state-based marketplaces—marketplaces established and operated by the states.

Regarding the status of states’ marketplace IT projects, 14 states with state-based marketplaces had developed and were operating IT systems to support their marketplaces, but as of February 2015, not all system functions were complete.

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