Throughout the Obamacare debate — which ended just over three years ago — we heard a lot of talk about how the federal government was so much more efficient at delivering health insurance than private firms are. This argument required a willing suspension of disbelief for anyone who has ever even heard of the federal government, much less its innumerable examples of wasteful spending. But that’s what we were told.
And I was reminded of that line of argument when I read this blog post by health-insurance expert Bob Laszewski about the mounting costs of building the health-insurance exchanges that will be central to delivering Obamacare beginning next year.
In California alone, Laszewski reports, federal grants for building an exchange already total $910 million. In New York, it’s $340 million just for establishing an enrollment and eligibility process. All told, this year the feds have awarded $3.3 billion in grants to build and market exchanges — and that doesn’t include