Oracle sues Oregon over failed health insurance exchange

Oregon Health Insurance technology
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Oracle has issues a breach-of-contract lawsuit against the state of Oregon

Acclaimed computer technology company Oracle has issued a lawsuit against Oregon. The lawsuit concerns the state’s health insurance exchange and the exchange’s use of the company’s technology. According to Oracle, the state government is using its technology despite standing disputes. These disputes have to do with some $23 million in unpaid bills from Oracle. The breach-of-contract lawsuit is seeking to recover the money that Oracle may be due but has not yet received.

Lawsuit aims to recover more than $23 million in damages

The lawsuit is seeking to recover $23 million plus interest. It also makes note of other damages, but these have not yet been specified. The conflict between Oracle and Oregon is based on the state’s insurance exchange. The exchange’s website, through which people were supposed to find affordable health insurance plans, was never officially launched to the general public. State officials had claimed that this was because of Oracle’s systems, while the company argues that the exchange’s poor management was to blame.

Exchanges struggled with technical problems in the first few months of their operation

Oregon Health Insurance technologyInsurance exchanges throughout the country were crippled by technical issues during the first few months of their operation. These issues prevented many people from using the exchanges to find insurance plans suitable for their needs. Many exchanges were able to overcome these technical problems in a relatively short amount of time, but others were forced to shut down after their open enrollment period came to an end. Still others were unable to go through with their plans to launch exchange websites, leaving many consumers without market support.

Political infighting may have been part of the reason why the state’s exchange failed

Oracle claims that the insurance exchange project fell victim to political infighting between state agencies. The issue is rooted in the management of the Cover Oregon exchange and the creation of a comprehensive computer system that was meant to store people’s medical and insurance information. Bureaucracy also played a role in delaying the formation of the state’s exchange, adding another facet to the political issues surrounding health insurance.

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