Another exchange deadline missed, but state extends timeframe

MONTPELIER — A function missing from Vermont’s online health insurance marketplace will not be added by today’s deadline, but state officials say they are giving the contractor additional time to complete the project before they look to impose penalties.

Under an amended contract signed in early April, tech giant CGI was required to deliver “change of circumstance” functionality by today. The upgrade would allow thousands of Vermonters to edit their personal information online if mistakes are made during registration, or if they experience a life-changing event such as marriage.

But progress remains slow, and the function remains in testing, according to Mark Larson, commissioner of the Department of Vermont Health Access.

“We will not have the change of circumstances functionality tomorrow,” Larson said Tuesday.

Mark Larson

Mark Larson

Vermont Health Connect, the state’s online health insurance marketplace required under the federal Affordable Care Act, launched in October with serious deficiencies. Users are still unable to edit their information, and small businesses must enroll directly with the state’s insurers because the website is not functional for them.

The ability for individuals to make online payments for premiums was added in early March. Prior to that, payment had to be mailed in by check.

Larson said the “change of circumstance” upgrade has been postponed, likely until June, because it is not ready to be integrated into the website.

“We’re not going to implement any new functionality until we’re sure that it’s ready and fully tested,” he said.

“After careful consideration and reflecting on what we’ve learned over the past few months … I expect that we will agree to push the expected delivery date for change of circumstance to June 8,” Larson said. “I think that is a more realistic time frame for the functionality to be completed the way we would expect to.”

The state is allowing the use of a provision in the $84 million contract with CGI that allows for a change in deadlines if both parties agree. Larson said he expects the formal agreement to be signed today, setting the new June 8 deadline.

The state, by agreeing to a change in date, is also pushing back when it can begin to collect on the financial penalties it is allowed to assess for late delivery, according to the contract. Under the contract, the state can take a 12.5 percent discount on the cost of the function.

CGI can “earn” back some pay, however, depending on how quickly it completes each task after a missed deadline. Completion within seven days will allow for a 50 percent reduction in the penalty. Completion within 14 days will allow CGI to earn back 25 percent of the penalty, and completion within 28 days will allow for a 10 percent reduction in the penalty.

Those penalties will not be available until after June 8, if the agreement between the state and CGI is signed.

“By agreeing to a change in date we agree that those penalties will be applied if the delivery is not accomplished on June 8,” Larson said. “The penalties are all triggered by the agreed-upon date.”

Larson said June 8, “is more realistic” for upgrading the site and adding change of circumstance.

“Vermonters have the appropriate expectation that that function be available to them, and I know that Vermonters are frustrated by that not being there today,” he said. “I share that frustration and have a responsibility (to develop) a plan that is most likely to be successful and I think the change is consistent with that.”

Larson said the state will look to assess financial penalties if the new date is not met.

“I believe that the plan to achieve success is more likely with the change of date,” he said. “We aren’t eliminating any of our ability to impose financial penalties. We reserve all of those rights in the contract.”

The amended contract, signed in April, also requires CGI to deliver the small business enrollment function by July 2. No changes have been made to that deadline.

“We are still evaluating that. We’ve made no change there, though,” Larson said. “That date still stands, right now.”

A spokeswoman for CGI did not respond to phone and email messages Tuesday.

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