EDITORIAL: Lacking oversight

The Affordable Care Act has proved to be like a strong onion. The more layers you peel back, the more it makes you cry. From ever-increasing premiums to sky-high deductibles to limited provider networks, and especially to mandates and penalties, the legislation features all sorts of unfortunate surprises.

And there’s always another layer to peel back. This time, it’s right here in Nevada.

The Associated Press reported that a state audit released last week raised questions about financial oversight of marketing efforts at Nevada’s health insurance exchange. The exchange has shelled out thousands of dollars to so-called “outreach” organizations without following up to determine whether they actually did what they were supposed to do.

State auditors found that in the six-month period ending in October 2015, the exchange paid $368,000 to nine organizations that contracted with the health exchange as “navigators” charged with promoting health coverage to hard-to-reach, uninsured populations. Problem is, the AP reports, the organizations billed for 17,900 staff hours, but offered documentation verifying they were at events for only about 3,000 of those hours, or 17 percent.

Officials with six of the nine organizations explained that when their staff members weren’t at events, they were working on social media posts, emails, training or helping with walk-in customers.

Does that really account for the other 83 percent of billable hours?

Further, the “events” attended in some cases hardly seem relevant with encouraging new enrollees. The audit specifically pointed to attendance at a lingerie convention and a belly dance festival.

In a written response to the audit, Bruce Gilbert, the exchange’s executive director, said he “appreciates the need to appropriately manage our revenues and expenses” and that the exchange is working on improving its practices in that area. He also defended attendance at the belly dance and lingerie events, saying the exchange needed to prioritize women’s health issues and target women who are self-employed or operate small businesses.

Meanwhile, Mr. Gilbert downplayed the lack of oversight, saying that “as a small agency with limited staff and resources, our primary focus cannot be second-guessing our navigators as to the events they believe they should attend.”

It must be nice to spend other people’s money.

In fact, Mr. Gilbert and his accountants should absolutely be second-guessing and scrutinizing any and all expenses, especially since the exchange is funded by federal grants — read: taxpayer dollars — and a 3 percent user fee on the insurance premiums it offers, which in most cases are also massively subsidized.

Anything less is a slap in the face to those footing the bill for the tear-jerking costs of Obamacare.