Oregon Accuses Health Exchange Developer Of ‘Defrauding’ The State


In a return volley of litigation Friday, the state of Oregon sued the software company that developed its failed health insurance exchange under Obamacare, the Los Angeles Times reported.

The suit, filed in Oregon state court, accused software giant Oracle of “fraud, racketeering, false claims, and broken contracts.” Oregon’s website performed so poorly during Obamacare’s first enrollment period that customers were forced to use paper applications. Less than 50 people signed up in the first two months.

The state will transition to the federal exchange, HealthCare.gov, next year as a result.

Oracle has already filed its own lawsuit against Oregon, apparently in anticipation of the lawsuit filed by the state, which had been promised since May. The company, which received $130 million for its work, accused the state and Gov. John Kitzhaber (D) specifically of “constant public slander” in the ongoing public dispute over the website’s performance.

Oregon attorney general Ellen Rosenblum didn’t mince words in her lawsuit’s assessment of Oracle’s performance:

Oracle lied to the State about the “Oracle Solution.” Oracle lied when it said the “Oracle Solution” could meet both of the State’s needs with Oracle products that worked “out-of-the-box.” Oracle lied when it said its products were “flexible,” “integrated,” worked “easily” with other programs, required little customization and could be set up quickly. Oracle lied when it claimed it had “the most comprehensive and secure solution with regards to the total functionality necessary for Oregon.”

The full lawsuit, via the Medford Mail Tribune, is below.

Complaint: State of Oregon vs Oracle by Mail Tribune