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Accenture Faces Mid-March Healthcare.gov Deadline Or 'Disaster'

PapayaSF writes "TheHill.com reports that Accenture has two months to fix HealthCare.gov by building a 'financial management platform that tracks eligibility and enrollment transactions, accounts for subsidy payments to insurance plans, "provides stable and predictable financial accounting and outlook for the entire program," and that integrates with existing CMS and IRS systems.' The procurement document, posted on a federal website, states that if this is not completed in time, there will be 'financial harm to the government' and 'the entire healthcare reform program is jeopardized.' Risk mitigation (which pays insurers who enroll a higher-than-expected number of sick patients) must be accurately forecast, or it might put 'the entire health insurance industry at risk.' Accenture will also have to fix the enrollment transmissions, which have been sending inaccurate and garbled data to insurance companies. Because the back-end cannot currently handle the federal subsidies, insurers will be paid estimated amounts as a stopgap measure. The document also said that officials realized in December that there was no time for a 'full and open competition process' before awarding Accenture the $91 million contract. What are their odds of success?"

5 of 215 comments (clear)

  1. Close to 100% by artor3 · · Score: 5, Interesting

    It'll be "good enough". Accenture built the California site, which works fine, and the insurers really want it to work, so they'll accept less than perfect.

    Of course, the summary is designed to make everyone say "THERE'S NO CHANCE!!" It's kind of insulting in its blatant demagogy, but I've come to expect that here.

    1. Re:Close to 100% by artor3 · · Score: 4, Interesting

      Two months isn't a real drop dead date. They'd certainly like it to be done by then, but it's not like everything gonna go down in flames if the insurers only get estimated payments, with adjustments coming in a couple quarters.

  2. Re:Who are Accenture? by jonbryce · · Score: 5, Interesting

    Andersen Consulting split off from Arthur Andersen a few years before the Enron scandal.

  3. Re:Who are Accenture? by Anonymous Coward · · Score: 5, Interesting

    Good at management? Ok here is a story from Norway, I won't name names but I personally know the lead developers of the project. Accenture was hired by DNB to work on a pension system, worth "billions". The application was utter crap, atleast the lead developer said so. So one day DNB (which had employees in Accentures offices due to the project) came and had some change requests – Accenture's management estimated it would require 2000 man hours to complete the task (pulled a random number out of their frickin' management ass). At the same time DNB's person in Accenture's offices had contacted the lead developer and asked him about this change also. He fixed the issue even before Accenture's management had the opportunity to talk with him, 8 hours spent.

    Accenture is nothing but a fuckin' scam, good at snake oil talk – officials working with this company is probably very very incompetent or even worse corrupt.

  4. Re:The odds of success are zero by DexterIsADog · · Score: 5, Interesting

    Why is everyone responding couching this in terms of a binary success/failure? I have worked in the health insurance industry for 20 years, through lots of business, state regulation and federal regulation clusterfuck deadlines, and the typical pattern is;

    Note that a deadline is approaching in a year or so
    Meet occasionally to marvel at how complex the change will be until 6 months before the deadline
    Assign a team to do the work with 4 months to go
    Have an "oh shit! ALL HANDS ON DECK!" come-to-Jesus meeting two months before the deadline where the CEO kicks some rhetorical ass
    The team works like hell to implement what they can
    Mid-level managers identify the *least* required functionality to avoid firing/contract penalties/lawsuit and/or prosecution
    Deliver *something* that technically meets the requirements
    Get an "attaboy" from the CEO on the heroic work done by everyone involved

    I'm not even being sarcastic. This is how it works. ICD-10 ring any bells?