Massachusetts Drops Health Exchange Contractor

March 19, 2014

Massachusetts is dropping the contractor that created the state’s dysfunctional online health insurance marketplace, ending a troubled partnership that has left thousands of consumers frustrated and many without coverage for months.

The state notified CGI last week that it was being terminated, and officials have started negotiating a transition. The $68-million contract with the Montreal-based technology consulting company expires in September, and Sarah Iselin, who was hired last month by Governor Deval Patrick to oversee repairs to the Health Connector website, said that exactly when CGI finishes its work and how much the state pays for it are subject to bargaining.

Massachusetts has paid just $15 million to CGI and has not made any payments since the fall.

“We have made the decision we are going to be parting ways with CGI,” Iselin said Monday during a meeting of the Massachusetts Health Connector Authority board.

Iselin said she decided against scrapping the website entirely and starting again, an option that was being considered a few weeks ago. Instead, she is leaning toward working with a new company to rebuild key portions of the website.

View Full Story From The Boston Globe