Government Work Costs 60 Times as Much as Private Sector

Boston, MA – Health insurance will soon be available through exchanges run by state governments in some states. Fortunately for taxpayers, most states decided to let the federal government set up a single exchange for citizens in their states to use.

Creating websites capable of allowing consumers to buy health insurance will cost at least $3.4 billion for the 17 states that chose to build their own exchanges.

A private company, esurance, was able to build an exchange 15 years ago with about $40 million in private funding. Allowing for inflation, esurance built the functionality of an exchange for about $57 million in today’s dollars.

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