In light of its troubles with IT contracts for Vermont Health Connect, the state is changing its oversight structure for the next massive project, an overhaul of Human Services information technology.
In order to relieve stress on the incomplete website, previously insured users are being asked to avoid it and, unless they have a problem, the call center, too. Snail mail is the recommended option. Additional costs to make the exchange functional could deepen the state’s budget gap. The project has a “current shortfall” of $11 million in requested federal grants and could need as much as $8.5 million beyond that, according to the internal memos.
The total amount Optum can earn is $29.4 million on a contract that currently runs through the end of January 2015.
Optum’s report finds insufficient state supervision of CGI’s work on Vermont Health Connect, recommends hiring a project manager with experience in handling $50 million to $100 million IT projects.
The contract revision includes a Sept. 30 deadline for bringing backlogs to “normal levels” for customers who need to make changes to their coverage or fix errors with billing or personal information.
Company chosen to bail out Vermont Health Connect was rebranded two years after settling a fraud case in New York in 2009. Vermont officials say Ingenix problems are old news.
The company hired to fix the state’s health care exchange identifies problems that have plagued the system since its inception.
CGI’s designated successor, OptumInsight, hired under yet another no-bid contract, is a company whose dubious origins raise great concerns.
Scott, Benning and Turner say CGI contact should have been terminated months ago, and suggest some state officials may need to be fired.
Canadian company hired to build the state’s health exchange will depart with about $67 million and an unfinished website. Optum to complete work on Vermont Health Connect.
The state has paid Boston law firm Mintz, Levin, Cohn, Ferris, Glovsky and Popeo $855,800 to provide legal advice on its contract with the CGI and has the firm under contract for at least $300,000 more.
Optum, a subsidiary of United Health Care, will help CGI with project management, though CGI will retain its full $84 million contract.
A May 21 deadline for a component that will allow users or customer service representatives to make changes to a person’s coverage has been extended to June 8.
Contractor for Vermont Health Connect must provide change function by May 21, small employer access by July 2 or risk more penalties.