As a general rule, just don’t believe anything the Obama administration says:
An executive of the largest contractor working on the federal health insurance exchange website told Congress Thursday that problems with erroneous enrollment information being transferred to insurance companies were “isolated” – a claim later echoed by an Obama administration official.
But insurance industry officials have told the Washington Examiner that this is simply not true. The problems – such as duplicate enrollments being sent from the federal system to insurers, incorrect cancellations, and spouses being mixed up as children – were in fact being widely encountered across the insurance industry.
(More on this here.) To be clear, these problems are distinct from the web site being unable to handle more than a handful of applicants at a time. In fact, as we’ve noted, the fact that the web site doesn’t work actually masks this problem; if people can’t sign up, the system doesn’t get much chance to fail. With only a handful able to use the system, they’ve been able to correct the bad data by hand. If they ever get the site to take applications, the problems from its delivering incorrect data to insurers will be huge.