Hugh Hewitt: State Exchanges are ‘Failing Spectacularly’ (and No One’s Noticing)

“MSM journalism has wholly failed to focus on the cost and benefits of these state exchanges –the fact that they are operating on the wish fulfillment model not hard facts and strong, data-supported projections..."

Yet another Obamacare narrative the media is purposely burying: the colossal failure of the state exchanges.

Take for example Covered California, an exchange that, as Hugh Hewitt found by doing just a little digging, has “no projected model of success”—it actually does not even know what demographic ratio is required to sustain the program. It also has no clear measure for success for its massive marketing budget, low standards for employee background checks, and essentially pays a “bounty for enrollees.” 

Last Friday, Hewittt interviewed the deputy director of Covered California, Dana Howard, and learned some startling things about the massive state exchange’s success model: there isn’t one. Seriously.

There is much to marvel at and be alarmed by in the conversation, but the most worrisome admission from Mr. Howard is that CovredCA.com has no projected model of success -it simply doesn’t know what demographic mix must be reached in order for the insurance policies being offered to be sustainable.  

It also has no “cost per lead” for its $190 million marketing budget, so it’s burning through dollars with no measure of effectiveness.

You should also be alarmed by Mr. Howard’s inability to quickly respond to questions about the burn rate of the $190 million dollar marketing budget.  There is no “cost per lead” just as there is no metric of necessary success when it comes to the demographics of overall enrollment.

Another cause for concern (alarm) is CoveredCA’s loose background checks, apparently only convictions for serious crimes disqualify applicants. 

Only serious conviction disqualifies you, not arrests, and not, by the way, non-payment of child support.  Evidently California has to hire deadbeat dads to do the jobs that child-support paying dads won’t do.  Our exchange on security/background checks led me to conclude that they are going through the motions not doing serious background investigations, and the inevitability of compromise of the system is high.

One last stunner: California’s exchange pays what Hewitt calls a $58 “bounty” to navigators for every enrollee. Big government in all its wasteful, inept, made-to-fail glory. Hewitt ends the piece by calling out the true culprits in this national swindle: the media who refuses to report on the “spectacularly” failing state exchanges.

They are actually failing spectacularly by any sane measurement, and the story is not being reported because a kept California media, led by the Lost Angeles Times doesn’t do basic reporting of the sort I did Friday for a mere 30 minutes.  Faith based-reporting covering faith-based insuring equals millions of Californians without health insurance come 1/1/14.  Crash. Burn.  Surprise, however, should not be tolerated.  The rapid, spiraling descent of the jalopy is visible to anyone who looks.

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