Vermont Drops the Maker of Its Glitchy Health Care Exchange Website

Struggles with Vermont’s health care exchange since last October led to a “divorce’’ between the state and the company running the website.
Struggles with Vermont’s health care exchange since last October led to a “divorce’’ between the state and the company running the website. –Toby Talbot/AP

Vermont has moved to drop the company that was hired to create its state health insurance marketplace after months of issues with the website and missed deadlines to fix it.

With a backlog of almost 14,000 insurance customers unable to make changes, Vermont is shifting its website tech developer from CGI over to Optum, another tech company, according to Burlington Free Press. Vermont and Optum signed a $5.69 million contract to fix up the website back in June.

CGI is the same company that was hired by the federal government and the state of Massachusetts to run those health insurance exchanges, which also experienced many of the problems Vermont’s system ran into.

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The federal government dropped its contract with CGI in January, and Massachusetts dumped CGI in March. Massachusetts officials have been “cautiously optimistic’’ about the relaunch of its website since then, and hope to have it up and running by the end of the year.

CGI and Vermont will transition apart over the next 60 days, and CGI will be paid $67 million of an originally agreed upon $83 million contract.