A California senator is seeking to audit the state’s Obamacare exchange after a Watchdog.org story revealed that $1.37 million was spent on a campaign featuring an eight-hour web stream starring a gyrating Richard Simmons.
The Jan. 16 event — now immortalized on YouTube — showed celebrity fitness trainer Simmons writhing on the ground to an MC’s chant of “Get Covered, hashtag, uh-huh,” a reference to Covered California, the state exchange. At one point, he snuggles up to a contortionist following a dance-off.
Covered California faces a $78 million deficit during the next fiscal year due to cutbacks in federal funding.
AP Photo/Rich Pedroncelli via Watchdog
“What a waste of money — oh, my gosh,” state Sen. Ted Gaines said in an interview. “I looked at the video and was blown away that they would spend money on that. And for them to think that people would want to sign up for health insurance from seeing it? Give me a break.”
Gaines formally requested the audit Thursday in a letter addressed to the chairman of the Joint Legislative Audit Committee. It was the same committee that recently discovered the exchange’s budget shortfall.
“Covered California recently spent $1.3 million on a widely mocked infomercial featuring Richard Simmons,” Gaines wrote. “I fear that this is evidence that the Exchange shows little regard for the precarious fiscal condition it faces.”
Gaines, who is vice chairman of the Senate Standing Committee on Insurance, said Covered California doesn’t appear to have a plan to fill in the deficit, and he fears that policy holders will be stuck with a massive rate increase.
“It is stunning to me that a Department this new and this small could be facing a deficit this big without a plan to cover it,” Gaines wrote. “In light of this deficit (and) the seemingly ill-advised informercial … an examination of the Exchange’s finances is in order.”
Several steps have to occur before an audit. The Bureau of State Audits will determine a cost based on the scope of the work; Covered California Director Peter Lee and the general public will have a chance to respond to the proposal; and the committee will decide whether to move forward, table the request, or transfer it to another agency.
A hearing is scheduled for Feb. 11.
Lee could not be reached for comment.
Covered California’s budget is $399.7 million, of which $102.6 is spent on outreach, a legislative report showed. So far, about half a million people have enrolled.
Published with permission from Watchdog.org.
Contact Tori Richards at [email protected] and on twitter @newswriter2.
DONATE TO BIZPAC REVIEW
Please help us! If you are fed up with letting radical big tech execs, phony fact-checkers, tyrannical liberals and a lying mainstream media have unprecedented power over your news please consider making a donation to BPR to help us fight them. Now is the time. Truth has never been more critical!
- Billionaire Bloomberg attacks Fla. AG Pam Bondi, other AGs over opposing EPA regulations - November 10, 2015
- Over 10 percent of Florida adults are barred from voting - July 24, 2015
- Florida bill would implement online voter registration - May 15, 2015
Comment
We have no tolerance for comments containing violence, racism, profanity, vulgarity, doxing, or discourteous behavior. If a comment is spam, instead of replying to it please click the ∨ icon below and to the right of that comment. Thank you for partnering with us to maintain fruitful conversation.
BPR INSIDER COMMENTS
Scroll down for non-member comments or join our insider conversations by becoming a member. We'd love to have you!
Comments are closed.