FBI Joins HHS, Congress in Probe of Oregon's Failed Obamacare Exchange

May 6, 2014 - 3:39 PM

Well, it's happened.  Cover Oregon's history of failure at creating a healthcare exchange has caught the attention of the FBI.  The exchange was officially scrapped after never becoming fully functional and questions remain as to why that was the case.

A preliminary inquiry was filed by the FBI over the issue - and the law enforcement arm of the inspector general along with the U.S. Department of Health and Human Services filed a similar inquiry, according to the Oregonian.

This comes after allegations were made that Cover Oregon's project managers produced fake web pages to fool federal officials into thinking the website progress was progressing.  In all, Cover Oregon's health care fiasco cost taxpayers $303 million dollars.

As a result, it seems that Congress has a few questions about this debacle as well (via WSJ):

Multiple congressional and government probes into what went wrong in Oregon are already under way, and it hasn't been determined whether the failed effort was a result of incompetence or if taxpayer money was abused and mishandled.

A recent assessment of Oregon's problems conducted on behalf of Democratic Gov. John Kitzhaber's office assigned blame both to the state's construction of the program and Oracle, which was paid to help set up the system.

Representatives of Cover Oregon didn't respond to a request for comment Sunday.

A spokeswoman for Oracle said the company wasn't aware of the reported FBI inquiry.

In a statement last month, Oracle spokeswoman Deborah Hellinger said, "Oracle looks forward to providing any assistance the state needs in moving parts of Oregon's health care exchange to the Federal system if it ultimately decides to do so."