Obamacare Contractor Overbilled UK ‘Tens of Millions of Pounds’

You can’t open up any news source these days without hearing about how much the rising costs of Obamacare are.  The cost of medical insurance is going through the roof, the cost of medical treatment is going through the roof and cost to employers in going through the roof.  At the same time, jobs and hours are being decreased and millions more Americans are finding themselves left without health coverage or sufficient income to purchase their own.

If we needed another excuse for the increased costs of Obamacare, the government may have provided another one.  In June, the US Department of Health and Human Services awarded a $1.2 billion contract with Serco Inc.  The company will work with the implementation of the health benefit exchanges part of Obamacare.  They will support the Centers for Medicare & Medicaid Services (CMS) located in Kentucky, Alabama and Virginia with about 1,500 staff.  Would you believe that this is the first health law contract, which is not very reassuring.

According to their website:

“Serco Inc. is a leading provider of professional, technology, and management services focused on the federal government. Our customer-first approach, robust portfolio of services, and global experience enable us to respond with innovative solutions that achieve outcomes that matter. Serco Inc. is part of an international service company with employees around the world.”

Serco will fit in well with the rest of those involved with Obamacare as they are currently under investigation by the British government.  Reportedly, they overbilled the government by ‘tens of millions of pounds.’  The United Kingdom had contracted with Serco to monitor offenders on parole and convicts released on bail.  The overbilling was discovered with the Justice Ministry conducted an audit.

Chris Grayling, Justice Minister told Parliament:

“They do not believe that anything dishonest has taken place, but we have agreed that if the audit does show dishonest action, we will jointly call in the relevant authorities to address it.”

Alan Hill, spokesman for Serco responded to the allegations saying:

“We’re moving forward with the contract.  We’ve got a tight deadline to get everybody trained and do all the testing.”

But Serco is such an efficient company in all that they do.  For example, Grayling stated when they ran the audit, they discovered that Serco had billed them:

“…for people who were back in prison and had had their tags removed, people who had left the country, and those who had never been tagged in the first place but who had instead been returned to court.”

And to think, the CMS contract with Serco is one of the largest contracts involving Obamacare and they will be processing and monitoring millions of applications for government subsidized healthcare.  With their track record in the United Kingdom, I’m sure they’ll do a bang up job of losing applications, mishandling others and charging the US government for every bit of it.