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Cover Oregon Announces Transition Agreement with Oracle

March 3, 2014

Interim Cover Oregon Director Dr. Bruce Goldberg today announced an agreement with Oracle that outlines an orderly transition of technology development services, and protects current and future Cover Oregon enrollees. Oracle is the primary website vendor for Cover Oregon. Under the agreement, Cover Oregon is withholding $25.6 million that Oracle claims is due for work previously completed.

“Governor Kitzhaber directed us to create a plan for the remainder of this open enrollment period, and create a path forward for the next. This agreement will allow us to continue enrolling Oregonians now and to create a smooth transition,” said Dr. Goldberg.

Terms of the agreement signed Friday include:

  • Cover Oregon will withhold $25.6 million of the $69.5 million Oracle has claimed for technology development work since November 2013 through February 28, 2013.  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. 

Since the original planned launch date, October 1, 2013, Cover Oregon has continued to work with Oracle to complete work that would provide a fully-functional website. Despite ongoing technical problems, there have been more than 123,000 enrollments in health care coverage through Cover Oregon.  

Additionally, Cover Oregon will convene a group that includes private sector technology experts to advise on the best options to move forward with the next phase of the website. The group will review options that include:

  • Retaining the current technology that is working and contracting with a different developer for the next phases; and,
  • Building on the existing investment and incorporating technology from other states or the federal exchange.