Went to school with Obamas' wife
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.
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.
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.
Vermont, too, is withholding $5.1 million to CGI over its failure to meet deadlines, according to a report in the Boston Globe.
The fight over payments comes as officials weigh their legal options, and some expect a rush of lawsuits once the major problems with the various exchanges sites are addressed.
Vermont is investigating CGI and, according to the Globe, Massachusetts officials will present a plan in January to ensure "accountability" for the website problems.
Massachusetts has lagged far behind on enrollment, after severe website problems that forced the state to go to its alternate system.
CGI was also the contractor in Hawaii, where the executive director of the exchange recently resigned amid meager enrollment.
CGI won the Hawaii contract even after the state Senate president warned the state exchange director not to hire the firm.
But the troubles at the state level and with HealthCare.gov have put the heat on CGI.
Aside from its various state contracts, its federal contract was worth nearly $94 million -- and then soared to $290 million.
http://www.foxnews.com/politics/2013/12/27/states-retaliate-against-obamacare-website-developers/