The state “ceded” responsibility for the project’s success to CGI, says the report written by Optum — the firm now in negotiations to take over the project — and as a result, “CGI has not met its commitments.”
There are “several critical functional requirements” that CGI did not complete, according to the report, but the firm will still walk away with $67 million of its $84 million contract.
The report is a snapshot of the project as of June, state officials said, and many of the issues it raises have been addressed.
The report levels much of the same criticism of Vermont Health Connect’s management that were made in previous consultant reports, dating back to reviews that cover the run-up to the October 2013 launch.
Since the latest report was compiled, the state has decided to part ways with CGI, and is in negotiations with Optum to take over the remaining IT work. Optum has a $15.1 million contract for its consulting work and ongoing operational support.
Optum’s report recommends that the state hire a project manager with experience in handling $50 million to $100 million IT projects. The state is close to signing a deal with someone who has that experience, according to Lawrence Miller, the state’s health care reform chief. He would not say who the state is hiring.
The new IT manager will be announced next week, he said.
Vermont Health Connect has already brought in David Martini from the Department of Finance and Management to handle day-to-day operations. Deputy Commissioner Lindsey Tucker, who previously had responsibility for day-to-day operations and IT project management, will continue as a policy director.
On Optum’s advice, Vermont has also shifted its focus from launching unfinished website components to preparing to handle the November open enrollment period with the existing functionality.
“I think it’s our responsibility to make sure we’re running a customer service (system) that leaves people unaffected by the (absence) of these kinds of functions,” Miller said.
None of the unfinished website functions will deploy before the end of open enrollment in February, he said. Some of those capabilities go beyond current health insurance industry standards, Miller said.
They include automated changes to personal information or health coverage, automated coverage renewals and allowing small businesses and their employees to use the site for enrollment.
Miller called it an “unfortunate reality” that the functions won’t be ready, but said it’s important to get them right and not rush the fixes online. New functionality will not be deployed until it has been fully tested, according to Mark Larson, commissioner of the Department of Vermont Health Access.
In addition to those visible portions of CGI’s uncompleted work, there are 2,500 “nonfunctional deliverables” that it was contracted to finish but never did. Nonfunctional deliverables are items such as how long it takes a Web page to refresh after a user hits “enter,” officials said.
The state has reduced the backlog of people who need to make changes to their coverage or personal information with Optum’s help, and both said they are “confident” that company will meet the Sept. 30 deadline in its contract to bring the backlog to “normal levels.”
Vermont Health Connect should be able to address change requests from customers as they come in by mid-October, said Laura Groschen, an Optum vice president.
There are 96,000 users who enrolled in Medicaid or commercial insurance through Vermont Health Connect in its first year, with an additional 34,000 small business employees being enrolled by the carriers. That process will remain in place through open enrollment.
Groschen said Vermonters should be comforted that Vermont Health Connect is “architecturally sound,” she echoed state officials who said the state has a solid foundation from which to build.
Miller said the “knowledge transfer” from CGI to Optum is going well, but at several points in the report, Optum says that CGI refused to turn over information it requested.
CGI’s withholding of information occurred when the state was pursuing “parallel tracks,” and CGI’s role was unclear, he said. Now that CGI is on its way out, the firm is cooperating, Miller said.
Officials did not give an update on Vermont Health Connect’s total cost, but it is likely inching toward $100 million.
Miller has said in the past that he expects the state will use its entire $171 million in federal grants to complete the project. Federal officials have said they will allow states to continue using implementation and development grants into next year, but it’s unclear exactly how long.
