Cover Oregon
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Cover Oregon

Cover Oregon was the health insurance marketplace for the U.S. state of Oregon, established as Oregon's implementation of the Patient Protection and Affordable Care Act. Cover Oregon was intended to enable Oregonians and small businesses to purchase health insurance at federally subsidized rates.

While the intent was to allow registration and selection of coverage via a website, the site was plagued with problems, and it was possible to purchase insurance only by paper registration. As of January 2014, almost $200 million of the $300 million allocated to develop and operate the Cover Oregon website had been spent.

As a result of the ongoing problems, in April 2014, the board of directors voted to close the state-run exchange and adopt the Federal HealthCare.gov exchange beginning in 2015. The FBI began investigating the failed development of the website in March 2014.

In March 2015, the state officially abolished Cover Oregon, permanently folding its functions into an existing state agency and the federal HealthCare.gov website.

Health insurance exchanges were established as a part of the 2010 Patient Protection and Affordable Care Act to enable individuals to purchase health insurance in state-run marketplaces. In this legislation, states could choose to establish their own health insurance exchanges; if they choose not to do so, the federal government would run one for the state.

In 2011, the Oregon Legislative Assembly passed Senate Bill 99, establishing Oregon's own exchange. Rocky King was named executive director of the exchange in late 2011, and on October 1, 2012, the exchange was named Cover Oregon.

Development of the website that would process online enrollments was done by Oracle Corporation and managed by the state of Oregon rather than an independent systems integrator. The project was plagued by numerous management and technological issues, and though the website was supposed to begin processing enrollments on October 1, by mid-October, it was unable to process any enrollments. As of mid-December 2013, the deadline for enrollment for coverage beginning January 1, the state had spent nearly $160 million and the site still could not process online enrollments. Governor John Kitzhaber informed Oregon residents that they should obtain a paper application and mail it in to obtain coverage. The state hired or reassigned nearly 500 people to process paper applications.

As of April 2014, the website was still not accepting online enrollments. 200,000 people had enrolled in Cover Oregon via paper applications, the majority through the Oregon Health Plan (Oregon's implementation of Medicaid). Cover Oregon Executive Director Rocky King and Oregon Health Authority chief information officer Carolyn Lawson both resigned in the wake of the failure of the website. Interim executive director Bruce Goldberg stepped down in April 2014 and was replaced by Clyde Hamstreet, a consultant who specializes in corporate turnarounds.

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