Oregon has filed a fraud and breach-of-contract lawsuit against Oracle
Late last week, Oregon filed a lawsuit against software company Oracle and several of its top executives. The state is accusing the company of fraud and breach-of-contract that may have cost Oregon a veritable fortune while leaving many of the state’s residence without access to a working health insurance exchange. Oracle was contracted by the state to develop the software that would manage the exchange, but internal problems have left the exchange inoperable and it has yet to see an official, public launch.
Oracle is seeking $23 million, plus interest, in unpaid bills from the state
The lawsuit is a response to legal action that Oracle has taken on the matter. The company has filed its own lawsuit against the state for breach-of-contract two weeks ago. Oracle claims that the state continued to use its software without providing any form of compensation. According to Oracle, the state owes some $23 million in unpaid bills. To date, the company has already received $130 million for its work on the state’s exchange.
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State’s insurance exchange is set to be operated by the federal government in the future
Oregon separated from Oracle in March of this year. The state’s exchange, Cover Oregon, suffered from severe technical problems during its early weeks, which made it impossible for state residents to enroll for insurance coverage. Those in charge of Cover Oregon have suggested that the exchange be shut down, allowing the federal government to take full control of the exchange through its own established network. To this end, Oregon has contracted Deloitte Consulting to make this transition as smooth as possible.
Government investigations may shed some light on the problems with the state’s insurance exchange
The Government Accountability Office and the Federal Bureau of Investigation are looking into the problems with the state’s insurance exchange. The findings of these investigations could have a major impact on the legal battle that has emerged between Oregon and Oracle. The matter is not likely to be resolved within the coming months, as the issue itself is quite complicated.