'Obamacare' Memos Reveal Chaos, Confusion of October Rollout

ABC News

View photo

gty sebelius obama kb 131106 16x9 608 Obamacare Memos Reveal Chaos, Confusion of October Rollout

President Barack Obama is joined by Health and Human Services Secretary Kathleen Sebelius while making a statement …

More than 175 pages of internal Obama administration memos, obtained by the House Oversight Committee, released Tuesday and reviewed by ABC News, present the most detailed account yet of the troubled rollout of the federal health insurance exchange, HealthCare.gov.

While there are no bombshell revelations, the documents make clear that the administration grossly underestimated the scope of the website's technical problems; struggled to contain widespread confusion among insurers and applicants; and now faces a barrage of new challenges triggered by its emphasis on paper applications.

The memos from Oct. 1 through Oct. 27 are "war room notes" from the government team charged with overseeing the health care law rollout. They don't provide any hard enrollment figures, which officials have promised to release later this month. But they do suggest the administration likely fell well short of its 500,000 enrollment target in the first month, possibly reaching fewer than one tenth of that goal.

Here are some highlights from the document trove:


From the moment HealthCare.gov went live, there were problems across the board, not just limited to logging in or creating an account. There were widespread reports of insurers' plans not showing up in the marketplace, or showing up with the wrong pricing or details. Many applicants (90 percent) who managed to get into the system couldn't pass residency tests to determine Medicaid eligibility. Meanwhile, agents and brokers couldn't access their portal, while regional account officers and caseworkers were "unavailable."

A Critical Incident Response Team (CIRT), also known as the "Tiger Team," composed of members of each division involved with the rollout, convened immediately. They began meeting daily at 8 a.m. and 2:30 p.m. until Oct. 15. The group stopped meeting regularly after that point, but "continue to discuss urgent topics."

RELATED: Phone, Mail Signup Uses Same System as Website

While much focus has been on the consumer experience, insurers have had an equally frustrating time with HealthCare.gov, and also contributed to some of the chaos. In the first week, insurers requested to make more than 200 changes to their plans and offerings through the portal.

On Oct. 7, for example, Humana Georgia wanted to cancel a PPO plan after 11 people had already enrolled. U.S. Health and Human Services officials agreed to allow the move but then had to figure out how to cancel and re-enroll each person.

Three days later, on Oct. 10 the memos show, the Oklahoma Community Care plan wanted to drop bariatric surgery coverage: "They understood the benchmark plan as covering it and so they covered it," the memo explains of the company's concern. "They noted other plans in [Oklahoma] didn't cover it. The other plans use the same language as the benchmark: covered if medically necessary except for weight reduction. [Oklahoma] Community Care didn't use that language and covered it. … They would like to stop covering bariatric surgery." HHS ultimately approved the change.


It's unclear is how many people succeeded in enrolling in new insurance plans through the online portal during October. As of Oct. 8, according to the memos, it was "700+ enrollments."

RELATED: New 'Obamacare' Snafus Strike White House

As for paper applications: More than 11,000 have been received, but only 4,000 had been entered into the system as of Oct. 27. Of those, it's not clear how many are completed and applicants officially enrolled.

Bottom line: it's hard to see how the first-month totals come anywhere close to 500,000, or possibly even 50,000.


Top administration officials, including HHS Secretary Kathleen Sebelius and President Obama, have repeatedly blamed higher-than-expected traffic to HealthCare.gov to help explain the disastrous user experience on the website. But the memos offer no indication that the officials closely overseeing the site were surprised by the volume, or blamed it for the poor performance.

As problems emerged Oct. 1, officials noted: "We heard that the capacity [of the site] was 100,000 people and there are 150,000 on it - is it an EIDM issue or a system capacity issue? (It is confirmed as an EIDM issue)" An n Oct. 3 memo indicated that the "EIDM servers may have software issue." The next day: "Initially thought it was a capacity issue, but changing the software."

The software glitches continued for those who were able to begin completing applications. On Oct. 9, officials reported, "For about 30% of the 70,000 applicants, the system has skipped through 'events' they are required to complete": in other words, not allowing people to complete their applications.


From the beginning, one of the biggest problems with the website has been the inability of people to create an account, log in or check their eligibility for a subsidy. The glitch has centered on the Enterprise Identity Management (EIDM), "the system that helps identify that people are who they say they are."

Repeatedly in October, analysts and administration officials talk about adding servers and making code fixes, each time implying that the noted "fix" should resolve the issue once and for all. But weeks after the EIDM issue first surfaced, they are still grappling with the issue.

"EIDM fix is taking longer than expected," analysts wrote in an Oct. 8 memo. "Website is shut down to carry it out. It's a new take on how to fix the problem that's being implemented today."

On Oct. 11, experts were still grappling with "code freezes" and considering an "EIDM alternative."


Initially, the Obama administration wanted to avoid paper applications, funneling all consumers to HealthCare.gov for the greater efficiency, ease of workflow and less manpower required. Paper applications were not initially available for download on the website. By the end of the first week, a scant 300 paper applications had been received.

Yet with the website problems spiraling, administration officials began to openly consider a shift to paper applications, despite knowing that all applications would still have to be processed through the same flawed computer portal.

Serco, the contractor responsible for processing all applications by mail, "can't process online the 500+ applications they have" because they can't log in, an Oct. 8 memo noted. "They may be doing the opening and mailroom part, but they haven't been able to link to the application and get people an eligibility determination."

Still, many people started turning to paper applications on their own. By Oct. 11, Serco reported around 1,000 paper applications and the call center was getting "30,000 requests a day for paper applications." On Oct. 15, Obama administration officials made a deliberate choice to promote paper applications as an alternative, making them available online and directing navigators to use them.

The collection of paper created new problems, however. There were mounting "discrepancies between the paper applications and online system they need to populate," one memo reads. In other words, many applications were incomplete without proper in-person follow up.

Thus began a major undertaking Oct. 22: "outbound calling," with Serco staffers personally calling applicants to try to correct applications and fill-in the blanks. "50% were not getting into the online system because they are not key-able that are missing some info," according to a memo. And attempts to obtain the missing info aren't always successful: "A significant number of outbound calls are not actually resulting in contacts. (Wrong numbers, etc.)," a memo from Oct. 25 reads.

As of Oct. 27, roughly 4,000 applications had been entered into the system, with 1,400 in the process of being keyed in by a contractor, according to the memos. About 6,000 applications remain in the queue because of missing data or other issues. To handle the surge in applications, the Serco is boosting its staff of 1,800 to 3,800 by December, according to an Oct. 16 memo.


Incarceration problem: In the first few days of the launch, as many as 6 percent of applicants were coming back as incarcerated, according to one memo. This was later determined to be a problem with the application itself. "Really high match for things we wouldn't expect like death, incarceration - mostly in the states," a memo from Oct. 7 reads.

NH Abortion: New Hampshire officials inquired about adding elective abortion coverage to their plan offerings for 2014 and wondered how to set up an account for separate payments. (Plans offered through HealthCare.gov with subsidy support are forbidden by law from covering abortions, although consumers can purchase separate coverage.) Officials at HHS dismissed the inquiry as infeasible: "It is not happening. It is not doable to have a segregated account and track it."

Utah requested to shut down its exchange until there were fixes to problems with issuers' plans not showing up. The state's biggest issuer, Select Health, was not appearing in the marketplace two weeks after launch.

Immigrant applications were not checked against the Department of Homeland Security database in the first few weeks, the memos show.

Fraud allegation: Kansas navigators reported on Oct. 8: "BCBS [Blue Cross Blue Shield} called an application back with all kinds of personal information to share and a changed password." No word on how the allegation was resolved.

VA & Deceased People: Seventy-five percent of total traffic to the Veterans Affairs data hub has matched deceased individuals, according to an Oct. 10 memo. Initially, officials said it was unclear whether it's a system problem, an issue of repeat submissions or fraud. One week later, a memo says the VA identified issue as a problem with a "VHA" verification mechanism.

UPDATE at 1:13 pm ET

Health and Human Services spokeswoman Joanne Peters downplayed the significance of the "war room notes," calling them "just notes by a contractor" who sat in on the meetings.

"Many of them are more than a month old and they reflect static points in time in a fast moving process," Peters said in an email statement. " We have made significant progress, as we have worked to identify issues, diagnose them and fix them. Users today are experiencing quicker page load times, less user errors and a better overall consumer experience as Americans are enrolling in coverage every day."

HHS said this week that the website is now capable of processing more than 17,000 applications per hour, though its unclear how many are getting through. Secretary Kathleen Sebelius told a Senate committee today that official enrollment figures for October will be released next week.

View Comments (735)

Recommended for You

  • Kourtney and Khloe Kardashian Help Scott Disick Celebrate His Birthday in Las Vegas

    Even though they split almost a year ago, reality TV star Scott Disick seemed on good terms with his ex Kourtney Kardashian during his 33rd birthday celebration in Las Vegas on Friday.Photos of the festivities showed the two were in good company, as Khloe Kardashian, Malika Haqq and other friends…

    Good Morning America
  • Josh and Anna Duggar Reveal They're In Marriage Counseling

    Josh and Anna Duggar revealed that they are trying to rebuild their marriage through counseling. Josh, 28, the eldest son of Jim Bob and Michelle Duggar who's family life was depicted on the TLC reality show, "19 Kids and Counting," left the treatment program back in March.

    Good Morning America
  • Meet The Baby Who Looks Like A Pint-Sized Gordon Ramsay

    Do you see the resemblance?His name is Arlo-Blue, and he's the baby that the internet is calling Gordon Ramsay's miniature doppelganger.After Claire Dempster tweeted a picture of her baby, jokingly claiming that the celebrity chef could be the father, the internet agreed."@GordonRamsay this is our…

    Good Morning America
  • How to: Chic Picture Frames on a Budget

    Justin DiPiero is a designer with HomePolish, a service that delivers personal interior design by the hour. He shows ABC News how to add a few quick and inexpensive touches to plain white picture frames so they're ready to decorate your walls.Watch the video above to learn how to make chic frames…

    Good Morning America
  • Johnny Depp Ordered to Stay Away From Amber Heard

    Johnny Depp has been ordered to stay away from his estranged wife, Amber Heard, until June 17. The actress filed a restraining order this morning in Los Angeles County Superior Court, alleging that during a fight last weekend, the actor hit her in the face with a cellphone, pulled her hair, struck…

    Good Morning America
  • Army Rangers Release Memorial Day Song From Afghanistan

    That’s exactly what occurred for First Lt. Andrew Yacovone and First Lt. Justin Wright, Army rangers writing and producing country songs on deployment in Afghanistan. Andrew described the moment -- a bunch of soldiers standing around after an exhausting day of training. “I called out to the…

    Good Morning America
  • Justin Bieber Sued for Alleged Copyright Infringement Over 'Sorry'

    Justin Bieber has been sued by indie pop star Casey Dienel for alleged copyright infringement over the singer's hit song "Sorry," which was produced and co-written by deejay Skrillex. Dienel, who performs under the name White Hinterland, is claiming "Sorry" infringes on "her original musical…

    Good Morning America
  • Former 'Glee' Actor Mark Salling Indicted for Alleged Possession of Child Pornography

    Former "Glee" actor Mark Salling was indicted today for allegedly receiving and possessing child pornography, the U.S. Attorney's Office announced. The actor, best known for portraying Noah "Puck" Puckerman on "Glee" for six seasons, was arrested last December for alleged possession of child…

    Good Morning America
  • 'Mr. Trump, What Are You Afraid Of?' Sanders Responds After Donald Backs From Debate

    Donald Trump backed down from much-hyped hypothetical debate he wanted to have with Sen. Bernie Sanders. Both Trump and Sanders said they wanted the debate to happen. Trump reiterated his claim that "the Democratic nominating process is totally rigged" and said that "Crooked Hillary Clinton and…

    Good Morning America
  • The Graduation Speech Harvard Is Calling 'The Most Powerful' You’ll Ever Hear

    Donovan Livingston, a master's graduate at the university, was chosen by a committee of faculty, staff and students to speak at the School of Education's convocation, a rep for Harvard told ABC News. Livingston told ABC News that the "true inspiration behind the piece" was the fact that he…

    Good Morning America
  • How to Tell If Your Kid Might Be Addicted to the Cellphone

    Kids who’re overly attached to their phones, possibly crossing the line into addiction, can be a problem for many families. Jason Clark, 15, of Little Rock, Arkansas, is no different. His mom, Tomika Clark, said there are days her son will spend eight or even 12 hours on the phone morning, noon…

    Good Morning America
  • TSA Head: Lines Won't Make for 'Summer of Misery'

    "I don't think it'll be a summer of misery," Transportation Security Administration Administrator Peter Neffenger told ABC News' David Kerley today. Despite the record number of passengers expected to take to the skies this summer, the TSA head says he's "cautiously optimistic" that the 768 new…

    Good Morning America
  • NFL Hopeful Stands Outside Patriots' Stadium for Over a Month for Chance to Try Out

    If anyone has persistence, it's Abiola Aborishade. Aborishade has gained national attention for standing outside the Gillette Stadium in Massachusetts almost every day for over a month now, waiting for a chance to try out for a spot on the New England Patriots' roster. "I'm still out there…

    Good Morning America
  • Squirrels Posing on Toy Horses Is Indeed a Real Thing

    You can no longer say you’ve never seen a living squirrel on top of a toy horse. Thanks to Swedish photographer, Geert Weggen, these phenomenal photos actually exist. “They are amazing in different poses and expressions,” Weggen wrote to ABC News about his inspiration for his “nutty” project.

    Good Morning America
  • Zika Fears Prompt 150 Public Health Experts to Call for Olympics to Be Moved From Rio

    A group of 150 prominent scientists, doctors and medical ethicists have signed a letter calling for this summer's Olympic Games to be postponed or moved from Rio de Janeiro due to the ongoing Zika virus outbreak in Brazil. In a letter directed to World Health Organization Director Dr. Margaret…

    Good Morning America
  • Man’s Creative Super Mario Proposal Gets High Score With Bride-To-Be

    When Pam Edwards was unsuspectingly playing the game alongside her now fiancé, Shane Birkinbine, on May 21, she had no idea she’d soon be winning not only the game, but also a new sparkly diamond ring. “You can make your own custom levels,” Birkinbine, 39, told ABC News of how he designed the game…

    Good Morning America
  • Memorial Day Deals 2016: The Biggest Bargains of the Weekend

    Memorial Day has become the unofficial start of summer. The entire weekend is also a big one for sales.“GMA”’s Becky Worley has a roundup of the best bargains of the weekend.The DealsAIR CONDITIONERS, GRILLS, CAMPING GEARWalmart: $76 off a Frigidaire window unit.Home Depot: Get 25 percent off…

    Good Morning America
  • Body-Camera Footage Shows Moments Before Police Fatally Shoot Unarmed Father of 2

    A judge has released portions of a former police officer's heavily redacted body-camera footage showing the moments leading up to a deadly police-involved shooting at a Mesa, Arizona, hotel. Daniel Shaver, a 26-year-old father of two, was staying at the La Quinta Inn & Suites in January on a work…

    Good Morning America
  • 'X-Men: Apocalypse': Burning Questions

    "X-Men: Apocalypse" hits theaters nationwide today and if you haven't seen all the past "X-Men" films dating back to 2000 -- yes it's been 16 years -- then you probably have a ton of questions. This will be a spoiler-free article, but ABC News enlisted the help of a comic book newbie Joi-Marie…

    Good Morning America
  • Calvin Harris Speaks Out for the First Time Since LA Car Crash

    Calvin Harris is breaking his silence after the musician was injured in a car crash last week. Harris, whose birth name is Adam Wiles, tweeted several messages to his more than 7 million followers today.

    Good Morning America