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Oregon governor seeks lawsuit over health exchange

By WTOP Staff

JONATHAN J. COOPER
Associated Press

SALEM, Ore. (AP) — Gov. John Kitzhaber said Thursday he’s seeking a lawsuit against Oracle Corp. over Oregon’s online health insurance enrollment system, the failure of which embarrassed the state and resulted in multiple investigations.

In a letter to Attorney General Ellen Rosenblum, Kitzhaber said he has fired state managers in charge of Cover Oregon, and now it’s time to hold accountable the website’s main technology contractor.

“This is a very serious decision taking on a very large corporation — the second-largest software corporation in the world — but I do not believe they’ve delivered for the state of Oregon,” Kitzhaber told The Associated Press during an interview in his state Capitol office.

Kitzhaber said Rosenblum will make the ultimate decision about whether to file a lawsuit, but he believes the state has strong claims. Rosenblum responded in a letter to the governor that her legal team has been reviewing options and developing legal strategies.

“I share your determination to recover every dollar to which Oregon is entitled,” she wrote. Cover Oregon and Oracle have agreed not to initiate legal action before May 31.

Oracle, which is headquartered in Redwood City, California, said in a statement Thursday it was not responsible for the failed launch.

“Contrary to the story the State is promoting, Oracle has never led the Oregon Health Exchange project,” Oracle’s statement said. “OHA (the Oregon Health Authority) and Cover Oregon were in charge and badly mismanaged the project by consistently failing to deliver requirements in a timely manner and failing to staff the project with skilled personnel.”

The governor is trying to shift blame from where it belongs, the company said, adding it is confident an investigation would “completely exonerate Oracle.”

In a letter to Cover Oregon’s temporary leadership last month, Oracle President and Chief Financial Officer Safra Catz wrote that the company provided “clear and repeated warnings” to Cover Oregon that the exchange website would not be ready to launch last October.

Oregon paid Oracle $134 million in federal funds to build what turned out to be a glitch-filled Cover Oregon website. Oregon is the only state that still doesn’t have an online portal where the general public can sign up for health insurance in one sitting through a marketplace required under President Barack Obama’s health care law.

The state is still withholding $25.6 million in payments from Oracle. Oregon abandoned plans for fixing the site and is switching to the federal portal used by most states, www.HealthCare.gov.

The website’s failure has been an embarrassment for the Democratic governor, who enthusiastically embraced Obama’s health care law and has for decades been a respected voice on health care policy. Kitzhaber’s Republican rival in the November election, state Rep. Dennis Richardson, has made the Cover Oregon problems a centerpiece of his campaign.

Kitzhaber declined to say how much money he hoped to recover from Oracle, but he said he’s willing to pay for the portions of the website that do work.

A review commissioned by Kitzhaber placed blame on the state’s contract with Oracle, which said the company would be paid based on its time and materials rather than specific content delivered. The review also faulted the state’s decision not to hire a system integrator to oversee the project.

Kitzhaber acknowledged the state’s failings but said Oracle shares the blame.

“I don’t think by any stretch of the imagination Oracle or anyone else could assume that we were paying them to produce a website that didn’t work,” Kitzhaber said.

Kitzhaber also sent a letter to the inspector general of the Department of Health and Human Services urging the federal agency, which supplied the money that paid Oracle’s bills, “to levy the appropriate fines and penalties to hold Oracle accountable.

In 2011, Oracle agreed to pay nearly $200 million to settle charges that it defrauded the U.S. government on a software contract. The Justice Department alleged that Oracle failed to tell the federal government about discounts available to other customers. The allegations initially were raised in a suit against the company under the False Claims Act, which provides financial rewards to private litigants who report alleged fraud against the government.

Kitzhaber urged U.S. Sens. Ron Wyden and Jeff Merkley to also use the authority of their offices to investigate Oracle’s culpability. Wyden is chairman of the Senate Finance Committee.

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Wozniacka reported from Portland.

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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