Vermont and Massachusetts are taking steps to get their money back from CGI Federal, the government contractor that built the health insurance marketplaces in those states as well as the federal marketplace Healthcare.gov.
State officials say CGI Federal delivered the websites late and with defects, reports the Boston Globe.
The state marketplace, Vermont Health Connect, wasn't working fully until two months after it opened. Vermont officials are withholding payments of more than $5.1 million and disputing more than $1 million in additional charges.
The Massachusetts Health Connector, revamped to accommodate the Affordable Care Act, has also suffered technical difficulties. State officials are reviewing the possibility of taking legal action against CGI. The state has paid the company $11 million of its $69 million contract, but will not pay any more until a finished product has been delivered.
Massachusetts says it won't pay until the website works
CGI also built most of the federal marketplace, Healthcare.gov, which was also plagued by errors and downtime. The administration has not taken any action against the contractor, however, nor have any of the other five states for which CGI built exchanges with varying success.