Massachusetts and Vermont are withholding or threatening to withhold payments from CGI Federal, the contractor who engineered their state-level health insurance exchanges, in addition to the federal Healthcare.gov.
The Boston Globe reports that Massachusetts officials are exploring their legal options against the company, and in addition, they are not paying any more of the money owed from the contract until the promise of a functional site has been fulfilled. The state has currently paid out about $11 million of its $69 million contract.
A spokesperson for the state's exchange said, "We are holding the vendor accountable for its underperformance and will continue to apply nonstop pressure to work to fix defects and improve performance."
Similarly, Vermont has already withheld just over $5 million dollars from CGI. The state has apparently paid $19 million out of its $83 million contract.
While CGI was the primary contractor on those two states, it also offered assistance on a five exchanges that opted not to use Healthcare.gov—Hawaii, Colorado, Kentucky, New Mexico, and California. Colorado and Kentucky's rollouts have been relatively smooth, while states like Hawaii have suffered serious problems.
This article is from the archive of our partner The Wire.
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