KHN Morning Briefing

Summaries of health policy coverage from major news organizations

Accenture Tapped To Take Over Efforts To Fix

CGI, the company that was responsible for the construction of the federal health insurance website, will be replaced next month when its government contract to run the online portal ends.  

The Wall Street Journal: Accenture To Take Over Fixing Website
Accenture Federal Services, a subsidiary based in Arlington, Va., won a one-year contract to continue technical improvements to the site after the government chose not to renew its contract with CGI Group Inc. CGI, which has had a contract to run the website since 2011, had been largely responsible for assembling the portal and fixing it. The company and the Obama administration have blamed each other for enrollment problems that dogged the portal since its launch (Armour, 1/12).

Bloomberg: CGI To Be Replaced By Accenture On Obamacare Contract
CGI Group Inc. (GIB), the company that built the main Obamacare website, will be replaced next month when its contract with the U.S. federal government expires, a person familiar with the decision said. The Obama administration intends to sign a contract with Dublin-based Accenture Plc (ACN) to complete unfinished work on and run the site, said the person, who asked not to be identified because the decision isn’t public (Wayne, 1/10).

The New York Times: Contractor For Health Portal Replaced, But Says ‘We Were Not Fired’
The contractor hired to build the computer enrollment system for President Obama’s health care law said Friday that it would stop working on the troubled insurance exchange when its contract expires at the end of February. CGI Federal, which was blamed by many in the administration for the glitches and missed deadlines that plagued the law’s rollout, will not pick up its option for a two-year maintenance contract for the website. “Let me be very clear, we were not fired,” said Lorne S. Gorber, the senior vice president for the CGI Group of Montreal, of which CGI Federal is an American subsidiary (Austen, 1/10).

The Washington Post: Obama Administration To End Contract With CGI Federal, Company Behind
According to officials familiar with the matter, who spoke on the condition of anonymity because the decision is not yet public, leaders of CMS became frustrated with the pace and quality of CGI’s work on the repairs. As federal officials and contractors have been trying to fix various aspects of the Web site in the past few months, about half the new software code the company has written failed when it was first used, according to internal federal information (Eilperin and Goldstein, 1/10).

Los Angeles Times: Obama Administration Replaces Contractor On Troubled Healthcare Site 
CGI, which has drawn sustained criticism for its work on a centerpiece feature of the president's health law, was effectively demoted last fall, when administration officials turned to a subsidiary of insurance giant UnitedHealth to rescue from its disastrous Oct. 1 debut (Levey, 1/11).

CNN: White House Awards Accenture HealthCare.Gov Contract
The Obama administration has tapped the world's largest consulting firm to take over its beleaguered Obamacare website. Accenture, a consulting and technology services company with 281,000 employees and $28.6 billion in revenue, won the one-year contract to continue fixing, the online health insurance marketplace set up by the Affordable Care Act. The Centers for Medicaid and Medicare Services made the announcement Saturday (Finnegan, 1/11).

Reuters: U.S. To Part With Contractor CGI For Obamacare Website
The U.S. government will part ways next month with contractor CGI Federal over the troubled Obamacare enrollment website,, which failed to work when it launched in October for millions of Americans shopping for insurance, the company said on Friday. ... CMS would not confirm or deny CGI's departure. "We are working with our contract partners to make a mutually agreed upon transition to ensure that continues to operate smoothly for consumers," a CMS spokeswoman said (Rampton and Humer, 1/10).

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