Sebelius: Obamacare Website Contract Doesn't Penalize Failure

Craig Bannister
By Craig Bannister | October 30, 2013 | 11:05 AM EDT

The contract to build the problem-plagued Obamacare website does not penalize the contractors for failing to fulfill their contractual obligations, HHS Sec. Kathleen Sebelius testified today.

In a House Energy and Commerce Committee meeting, Sebelius was asked by Rep. Anna Eshoo (D-Calif.) the Health and Human Services secretary:

"If they (the contractors) fail to fulfill their obligations - I don't know what's in the contract - is there a penalty?"

"There isn't a built-in penalty," Sec. Sebelius answered, adding:

"But, I can tell you that paying for work that isn't complete is not something that we will do."

Yet, Obamacare website contractor CGI Federal testified last week that it has already received payment of $112 million so far.

And, five Democrats have already called on Attorney General Eric Holder to demand a refund from the website contractors.