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States weigh legal options against contractor for malfunctioning health insurance websites

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As the federal health insurance website limps to recovery from its botched debut, states with their own malfunctioning websites, including Massachusetts and Vermont, are taking the first steps to recoup taxpayer dollars from the very same company leading the federal rollout. Massachusetts officials are reviewing legal options against CGI Group, a Montreal-based information technology firm, and will make recommendations on how to proceed at a Jan. 9 meeting. So far, the state has paid $11 million of its $69 million contract with CGI. It will not pay a penny more until a functioning website has been delivered, officials said. In Vermont, state officials alerted CGI that the state is withholding payment of $5.1 million to make up for the company� ??s failure to meet key deadlines.

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Sheila Samples is an Oklahoma writer and a former civilian US Army Public Information Officer. She is a Managing Editor for OpEd News, and a regular contributor for a variety of Internet sites.

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