I wonder how the math works out.

If you assume that each dev has a salary of $100k, they're probably costing the company $200k for benefits, office space, etc. so $40 mill pays for at most 200 years of dev time.

Add in managers and a profit margin and $40 mill probably buys you a team of fifty devs for two years.

That doesn't sound too absurd. They may have failed, but $40 million seems like the right ballpark for a healthcare exchange.