When the consulting group McKinsey released a survey last month finding that some 30 percent of employers would stop offering health care coverage as a result of the Affordable Care Act, many speculated the firm was fishing for additional business contracts. But as the Government Accountability Office recently revealed, McKinsey is already benefiting from substantial government contracts associated with the new health care reform law:
“More than $790 million has been obligated to contractors from various federal agencies for the implementation of the health reform law. [...] A majority of the contracts were awarded to states for the purpose of implementing the reform law’s Pre-Existing Condition Insurance Plan program, but several other high-profile contractors — such as Booz Allen Hamilton, Mitre Corporation and McKinsey & Company– received funding as well [...]
“McKinsey & Company received two awards totaling more than $7.6 million for Affordable Care Act stand-up activities at IRS, including initial development of the agency’s strategic plan, facilitation services, review/analysis of legislative proposals, and information technology and overall implementation planning.”
The consulting firm has already drawn fire from the White House, members of Congress, and the health-care industry for publishing the study, whose questionable methodology led one survey expert to liken it to a “push poll.” After finally releasing its methodology following pressure from Congress, McKinsey qualified its findings by saying the study was “not intended as a predictive” analysis.
By publishing an ACA study incongruous with its “typical, meticulous methodology,” McKinsey risked its professional reputation. And yet the firm is benefiting government contracts derived from the new law. Makes you wonder just what game the firm is playing.