December 27, 2013
Judson Berger and The Associated Press contributed to this report.
Several states that paid millions to set up ObamaCare exchange websites but got error-plagued systems in return are starting to fight back, halting payments to the contractors and weighing legal options.
Senior Vice President of CGI Federal Cheryl Campbell. (photo courtesy www.nydailynews.com)
The same contractor that shouldered a large part of the blame for botching the federal HealthCare.gov is also under fire at the state level, where the company had an array of contracts to set up local ObamaCare exchange sites. CGI Group is facing angry officials in Massachusetts and Vermont who are cutting off payments in retaliation for widespread website problems.
Massachusetts — whose government was one of the staunchest supporters of ObamaCare, and whose health plan arguably was the model for the law — is refusing to pay any more until a working website is delivered.
A spokesman for the Massachusetts exchange told FoxNews.com that CGI’s system is “far from where it needs to be” and the state will apply “nonstop pressure” to fix the problems.
Spokesman Jason Lefferts explained that while people who are not seeking subsidies can apply online, the system still can’t properly calculate subsidies for those who are. The state, then, had to create an alternate system to send those individuals additional paperwork with information about subsidies and plans. Plus, the site continues to experience error messages and log-in issues, among other problems.
Massachusetts has paid $11 million of its $69 million contract.