Breaking: Cover Oregon Will Keep $26 Mil. Under Agreement with Oracle

cover oregon

Cover Oregon officials announced today that they have reached a transition agreement with Oracle, the software company responsible for building the exchange’s troubled website.

Under the agreement, Cover Oregon will pay Oracle $43.9 million for the work it has done from November 2013 through the end of February 2014.  Cover Oregon had been withholding the money while Oracle continued its efforts to fix the exchange’s dysfunctional website.  But the exchange will keep $25.6 million.

According to a press release issued this afternoon by Cover Oregon, the terms of the agreement reached on Friday also include:

  • Oracle will not use the disputed amount as a reason to stop providing services during this open enrollment period.
  • Oracle will provide transition services, maintenance and repairs to the technology infrastructure, under the direction of Cover Oregon.
  • Cover Oregon reserves all legal claims, and has explicitly maintained the right to challenge the present payment, and any prior payments made to Oracle.

Cover Oregon will also convene a group of “private sector technology experts” that will advise the exchange on moving forward with its website, including launching the portion that will allow individuals to select and enroll in qualified health plans (QHPs).

Last week more than 100 Oracle programmers were removed from the team developing Cover Oregon’s website after launching a piece of the website that allows insurance agents and community partners to enroll people into health insurance.