Part of Health Care System so flawed it could bankrupt insurance companies

While the administration publicly expresses full confidence in its health care law, privately it fears one part of the system is so flawed it could bankrupt insurance companies and cripple ObamaCare itself.

While the administration publicly expresses full confidence in its health care law, privately it fears one part of the system is so flawed it could bankrupt insurance companies and cripple ObamaCare itself.

"Week after week, month after month," says John Goodman of the National Center for Policy Analysis, "the Obama administration kept telling us everything's working fine, there's no problem and then they turn on a dime and fire their contractor."

To justify a no-bid contract with Accenture after firing CGI as the lead contractor, the administration released documents from the Department of Health and Human Services and the Center for Medicare and Medicaid Services that offered a rare glimpse of its worst fears, saying the problems with the website puts "the entire health insurance industry at risk" ... "potentially leading to their default and disrupting continued services and coverage to consumers."

Then it went even further, saying if the problems were not fixed by mid-March, "they will result in financial harm to the government."
It even added that without the fixes "the entire health care reform program is jeopardized."

Shortly after the website went live,one official told Congress a critical part of the system – what is known as the “back end” -- had not even been built yet.

Doug Holtz-Eakin, former head of the Congressional Budget Office, says "the back end -- that information is supposed to be transmitted to an insurance company, the insurance company knows who you are, they know what policy you've picked."

But the back end still hasn't been built, so insurers are dealing with massive confusion, missing information on who's signed up and what subsidies they get. (Full story)