A former Princeton classmate of First Lady Michelle Obama is a senior executive at CGI Federal, a company that received a no-bid government contract to set up the ObamaCare website, according to reports by the Daily Caller.

Did Obama Admin Know Millions Would Lose Their Health Plans?

The website also reported that Townes-Whitley and her husband spent Christmas with the Obamas at the White House in 2010.

Hannity reported on the controversy last night, highlighting the Daily Caller's report that Mrs. Obama and Townes-Whitley belonged to a student group that hosted a controversial speech by a Palestinian leader that supported terrorism against Israel.

Sean discussed the apparent example of cronyism with Dr. Charles Krauthammer, author of the new book, Things That Matter.

Krauthammer said he did not want to rush to judgment on the Michelle Obama connection, but he believes that a government program as large as ObamaCare is destined to be "riddled with cronyism" and plagued by corruption.

He pointed back to the Solyndra failure and the "entire boondoggle" of President Obama's effort to create a "green energy economy ... out of nothing."

"It is an intrinsic part of the great entitlement state. The state that thinks it can do anything on its own. Take over a sixth of the economy with health care, create out of nothing," he said, adding that the cronyism and corruption stems from decisions made "not on the basis of the market, but on the basis of what a politician or a bureaucrat wants."

Watch the full discussion above, and tune in to Hannity tonight at 10p/1a ET as Sean hosts a panel of experts to discuss whether real solutions are possible in the ObamaCare mess.

Henry to Carney: “Will You Admit That What the President Said Isn’t True?