Obamacare Contractor Under Investigation for Fraud

A company contracted by the U.S. government to help implement Obamacare’s health insurance exchanges is currently under investigation in Great Britain for fraud, the Hill reported:

The investigation comes after an audit suggested that Serco had overcharged the British government for certain services unrelated to health care.

Serco won a significant contract earlier this month to help build new insurance exchanges under President Obama's health care law.

According to the original report in the Independent, cited by the Hill, Serco has allegedly overcharged the British government by £50 million, or $65.2 million, for government services. The services were not health care related.

The Obama administration announced two weeks ago that it was delaying the enforcement of the employer mandate, which requires businesses over a certain size to provide health insurance to their employers.

This announcement likely triggered further delays to the law’s implementation, which were announced a few days later in a regulation.

The U.S. government is seeking to instill confidence in the public despite these setbacks as it implements the Affordable Care Act, also known as Obamacare. For example, the Department of Health and Human Services announced $150 million in grants last week.

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