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Markets aren’t punishing Obamacare contractors — yet
The companies the Obama administration hired to build the president’s new health care website, healthcare.org, have not yet taken a financial hit from the site’s failed launch this month.
Executives from CGI Group, Equifax, and Serco Group were in Washington, testifying before the House Energy and Commerce Committee on Thursday about the early glitches that have plagued healthcare.org.
The Obama administration has taken a lot of heat for the website’s struggles, considering the Affordable Care Act has been billed as President Obama’s legacy and crowning achievement. While congressional Republicans are quick to criticize the site’s shortcomings, the companies that built the website have not seen their reputations suffer on Wall Street.
Canadian-based CGI Group, whose subsidiary, CGI Federal, participated in building healthcare.org, has seen its stock remain stable. When the health insurance exchanges opened on Oct. 1, CGI’s stock opened at $34.83. On Thursday, it closed at $34.43.
In documents released to the House committee, CGI stated that it has received more than $550 million in government contracts since October 2011 from the Department of Health and Human Services, which is responsible for overseeing Obamacare.
Equifax Inc., whose subsidiary, Equifax Workforce Solutions, also helped build the website, has actually seen its stock price rise to $63.74 Thursday from $59.68 on Oct. 1.
Likewise, Serco Group, a third company that helped build the website, has also enjoyed a slight boost in its stock price since Oct. 1, rising to $552.50 Thursday from $548 then.
The fourth company that helped build the website, QSSI/Optum, is not a publicly-traded company.
More generally, the New York Stock Exchange index of health care-related stocks are also up for the opening weeks of the Obamacare insurance exchanges.
The index closed Thursday at 9,763.31, up 100 points for the month and close to the index’s 52-week high.
© Copyright 2014 The Washington Times, LLC. Click here for reprint permission.
About the Author
Tim Devaney is a national reporter who covers business and international trade for The Washington Times. Previously, he worked for the Detroit News, Grand Rapids Press, Portland Press Herald and Bangor Daily News. Tim can be reached at firstname.lastname@example.org.
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