Connect for Health Colorado (Colorado marketplace), the health insurance exchange established by the State of Colorado under the provisions of the Patient Protection and Affordable Care Act, did not expend $9.7 million of Federal establishment grant funds in accordance with Federal requirements. Specifically, the Colorado marketplace (1) did not adequately document costs that it charged to the establishment grants ($4.4 million); (2) charged costs to the establishment grants for unallowable contract costs whose periods of benefit occurred after December 31, 2014 ($4.5 million), which was contrary to Centers for Medicare & Medicaid Services guidance regarding the expenditure of establishment grant funds; (3) improperly transferred costs from one establishment grant to another without demonstrating that the transfers were performed to correct bookkeeping or clerical errors ($312,000); and (4) did not efficiently and effectively administer establishment grant funds including improperly awarded bonuses, overpayments to subgrantees, unallowable promotional giveaway items, excessive and unreasonable tips, vendor rebates that were not credited to the establishment grants, and unallowable social activities ($463,000).
CO
United States
