Obama Administration Severs Ties With CGI For Healthcare.Gov; Takes Accenture On Board

By CIOReview | Monday, February 3, 2014
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Fremont, CA: After being at loggerheads for months over the error-prone healthcare portal healthcare.gov, the Obama administration has decided that it is better-off without the services of CGI. The deal with CGI is going to end in the month of February 2014 and The Centers for Medicaid and Medicare Services (CMS) has decided to end ties with CGI and go on with Accenture instead.

CGI was handed over the project in September 2011 to develop and maintain the healthcare portal under the provisions of the Patient Protection and Affordable Care Act (also called 'Obamacare') designed to serve the residents of thirty-six states in the U.S. By and large, CGI came up with an underperforming website that could not meet the expectations and the citizens were left in the lurch as most of them couldn’t sign up on the website as reported by Reuters.

The healthcare portal still struggles in automated enrollment of people for Medicaid, computation of amounts to be delivered for their customers’ federal subsidies and keeping up a tabulated record of their enrolled customers.

CGI executives testified before a White House committee about problems with the site, where users tried for days without success to sign up for the health insurance plan. “This is not a simple website, but rather a very complex integrated technology platform that, for the first time, combines the process of selecting, enrolling in insurance, and determining insurance eligibility for government subsidies all in one place and in real time," says Michael Roach, CEO of CGI, as reported by Washington Business Journal.

CMS has signed a contract with Accenture for $45 million for the project's initial phase, which includes 24/7 customer support, eligibility and enrollment functions, and transmitting the personal data in enrollment forms, according to CNN. Accenture has previously worked with the health insurance industry on projects like Coveredca.gov.

CGI confirmed it will finish out its work on the site, but the contract will not be renewed. As lead in designing the system, its contract could have been renewed for one or two years. The ending of the deal took its toll on the market value of CGI.