Facing a budget shortage of nearly $80 million , California's Obamacare exchange has spent another 1.37 million funding an outreach video featuring exercise guru Richard Simmons gyrating on the floor and hugging a contortionist who is kneeling with his buttocks in the air.

Perhaps the most surprising thing of all is that the almost one and a half million was in production costs alone. According to Covered California, Simmons was not paid for his work.

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