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Cover Oregon Announces Deal To Partially Pay Oracle

OPB | March 3, 2014 5:34 p.m. | Updated: March 27, 2014 10:48 a.m. | Portland

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Cover Oregon says it has reached a transition agreement with Oracle, the company that’s been building Oregon’s health exchange website.

It means that any legal fight between the two organizations can be delayed — at least until after the health insurance enrollment window closes.

For the four months from November to the end of February, Cover Oregon says Oracle billed about $70 million for the website.

Cover Oregon says it’ll pay about $43 million, but it’s withholding the rest because of the website problems.

The disagreement could end up in court. But Interim Cover Oregon Director Bruce Goldberg says the agreement ensures Oracle won’t stop providing service, at least for the next 60 days, “Both sides had something that the other wanted. You know, they had people and expertise and we had dollars that’s what we came to an agreement about,” said Goldberg.

Under the agreement, the state says Oracle will provide transition services, maintenance and repairs.  Both sides maintain the right to go to court.

Calls to Oracle weren’t immediately returned.

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