Oregon Governor Seeks Lawsuit Over Health Exchange

Oregon Gov. John Kitzhaber looks on during a news conference, Thursday, March 20, 2014, in Salem, Ore. Kitzhaber announced on Thursday that an independent review of Oregon's troubled health insurance exchange has fou... Oregon Gov. John Kitzhaber looks on during a news conference, Thursday, March 20, 2014, in Salem, Ore. Kitzhaber announced on Thursday that an independent review of Oregon's troubled health insurance exchange has found that a breakdown of management, an overly ambitious scope, and low quality of work by technology contractor Oracle Corp. are some of the reasons for Cover Oregon's failed launch. (AP Photo/Statesman-Journal, Kobbi R. Blair) MORE LESS
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SALEM, Ore. (AP) — Gov. John Kitzhaber said Thursday he’s seeking a lawsuit against Oracle Corp. over Oregon’s online health insurance enrollment system, the failure of which embarrassed the state and resulted in multiple investigations.

In a letter to Attorney General Ellen Rosenblum, Kitzhaber said he’s fired state managers in charge of Cover Oregon, and now it’s time to hold accountable the website’s main technology contractor.

“This is a very serious decision taking on a very large corporation, the second largest software corporation in the world, but I do not believe they’ve delivered for the State of Oregon,” Kitzhaber told The Associated Press during an interview in his state Capitol office.

Kitzhaber said Rosenblum will make the ultimate decision about whether to file a lawsuit, but he believes the state has strong claims. Cover Oregon and Oracle have agreed not to initiate legal action before May 31.

Oracle has said it’s not to blame for the failed launch. In a letter to Cover Oregon’s temporary leadership last month, Oracle Corp. President and Chief Financial Officer Safra Catz wrote that Oracle provided “clear and repeated warnings” to Cover Oregon that the exchange website would not be ready to launch last October.

Oregon paid Oracle $134 million in federal funds to build what turned out to be a glitch-filled Cover Oregon website. Oregon is the only state that still doesn’t have an online portal where the general public can sign up for health insurance in one sitting through a marketplace required under President Barack Obama’s health care law.

The state is still withholding $25.6 million in payments from Oracle. Oregon abandoned plans for fixing the site and is switching to the federal portal used by most states, www.HealthCare.gov.

The website’s failure has been an embarrassment for the Democratic governor, who enthusiastically embraced Obama’s health care law and has for decades been a respected voice on health care policy.

Kitzhaber declined to say how much money he hoped to recover from Oracle, but he said he’s willing to pay for the portions of the website that do work.

“I don’t think by any stretch of the imagination Oracle or anyone else could assume that we were paying them to produce a website that didn’t work,” Kitzhaber said.

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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  1. Oregon paid Oracle $134 million in federal funds

    That’s the big pill to swallow, and everybody is on the hook until the State of Oregon legally shakes Oracle upside down for a refund.

    Oregon abandoned plans for fixing the site and is switching to the federal portal used by most states, www.HealthCare.gov.

    How ironic. I felt, as most liberal Oregonians, that Oregon would be a national leader in state exchanges. As it turned out it would be Kentucky (who saw that coming?) with the model for the nation, and now Oregon is dependent upon the once-disaster healthcare.gov. (now improved) instead of their own website. head shakes.

  2. And who would have thought (before the fact) that Oracle would be incapable of delivering? Data bases are Oracle’s thing…

    Here’s hoping Oracle decides to settle out of court.

  3. Larry Ellison’s (CEO & President of the Board of Directors) total 2013 compensation: $78,440,657
    Safra Catz’ (CFO & Co-President) total 2013 compensation: $43,590,605
    Mark Hurd’s (Co-President) total 2013 compensation: $43,592,574
    Thomas Kurian’s (Head of Product Development) total 2013 compensation: $31,635,712

    Seems like those people could well afford to hand in some of their outrageously high stock-option grants to compensate the people of Oregon who they have failed so miserably. The regular employees of Oracle (who I’m sure are fine, hard-working people) and Oracle’s other costumers wouldn’t have to pay a dime.

  4. Covered California’s website has always worked well… It better! Considering Silicon Valley, the worlds tech hub is here…

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