October 19, 2013
The British multinational in charge of processing Obamacare paper applications received a hefty contract boost just days before Healthcare.gov’s disastrous roll-out, a sign that the Obama administration may have expected serious problems with the website.
The Business of Federal Technology (FCW) reports that on Sept. 26, the Centers for Medicare and Medicaid Services (CMS) increased their planned payout to Serco’s U.S. subsidiary by 75 percent, adding an extra $87 million to the $114 million promised for processing initial Obamacare enrollment applications.
The contract documents do not explain the last-minute infusion of federal dollars, and neither Serco nor CMS would disclose why the agreement was modified so soon before the rollout.
“Serco is a highly-skilled company that has a proven track record in providing cost-effective services to numerous other federal agencies,” CMS said in an emailed statement to FCW. “The company has provided exceptional records management and processing support to other federal agencies, similar to work they will do for the Marketplace.”