Category Archives: State Government

Lawmakers launch new PAC

MONTPELIER — A pair of moderate lawmakers — one a Democrat, the other a Republican — have launched a nonpartisan PAC aimed at electing candidates that seek “fiscal responsibility” and “balanced, common-sense public policies.”

Rep. Heidi Scheuermann

Rep. Heidi Scheuermann

Reps. Heidi Scheuermann, R-Stowe, and Paul Ralston, D-Middlebury, who is not seeking reelection, announced the new political action committee, Vision to Action Vermont, on Monday. The duo, who have worked together on the House Commerce and Economic Development Committee for the past four years, say they want to “encourage economic prosperity, greater opportunities for Vermont families and businesses, and individual liberties and responsibility.”

“I am very excited to launch this new endeavor,” Scheuermann, who flirted with a run for governor earlier this year, said in a press release. “For many years, I have advocated strongly for a long-term, comprehensive strategy for economic growth in Vermont, and this organization will help bring that focus to the forefront.”

Ralston said November’s election is key, with lawmakers set to tackle health care, property taxes and “taxes in general” during the next legislative biennium that will have an impact on the state’s small businesses and families.

Rep. Paul Ralston

Rep. Paul Ralston

“We must be sure that those in elected positions address those issues thoughtfully and independently, and with an eye toward the benefits and consequences to our economy,” he said in the release.

The PAC plans to raise money to support, promote and endorse candidates of all parties “who are committed to policies of true economic growth, and show great leadership, strength, and independence, yet do so with compassion and respect.”

Deadline for AHS reorganization extended

MONTPELIER — Governor Peter Shumlin’s own Pathways from Poverty Council is asking him to allow for public participation before the Agency of Human Services issues its recommendations on how to address systems, policies and procedures within the agency.

As a result, Shumlin’s office says it is planning to extend an Aug. 1 deadline for AHS Secretary Doug Racine to submit a plan to the governor’s office to reorganize the agency. That deadline will now be Oct. 1.

Shumlin’s order for a reorganization plan, along with other more immediate changes he called for in May, came on the heels of the deaths of two children involved with the Department for Children and Families. Two-year-old Dezirae Sheldon of Poultney died in February and 15-month-old Peighton Geraw died in April. Both deaths were ruled homicides resulting from trauma.

Shumlin said a review and reorganization of DCF is needed because the current department was created from two others in 2004. He said he wants to ensure DCF is focused on its core mission: protecting children and strengthening families. Work not associated with those issues may be reassigned to other parts of state government, according to the governor.

Christopher Curtis

Christopher Curtis

Christopher Curtis, co-chairman of the Pathways from Poverty Council, created by Shumlin through an executive order in December, said council members are aware of ongoing action by a special legislative panel.

“I think the council members became increasingly aware that there’s clearly a public process that the Legislature has undertaken on the questions of child protection. It’s clearly been undertaken with urgency and great concern, as is appropriate,” he said.

But members also want to ensure that any changes made by the administration to DCF also includes input from stakeholders and the public.

“I think many of the stakeholders around the table at the poverty council starting thinking that if there are major policy chances being considered that may have a big ripple effect,” he said.

Council members “wanted to be a part of whatever changes the administration is making,” Curtis said, “rather than just respond to those.”

The council delivered a letter to Racine requesting more time and public input at its Thursday meeting. Shumlin agreed on Friday.

“The Poverty Council has done tremendous work in the past year, helping us formulate smarter, more responsive policies for Vermonters in need,” Shumlin said in a statement. “I am grateful for their work, and appreciate their suggestion that we take more time and receive more input prior to formulating further recommendations regarding the work of the Agency of Human Services and the Department of Children and Families.”

Shumlin said his administration will work with the council on receiving public input.

“I’ve asked Secretary Racine and his Agency team to coordinate with the Poverty Council to ensure we receive strong feedback in this process, and look forward to receiving their further recommendations by October 1st,” Shumlin said in his statement.

Curtis said additional input will help the administration reform the agency in a constructive way.

“We can’t possibly represent all the constituencies out there. Our hope is that this will invite more process … and allow people an opportunity to either write to the governor’s office or write to the secretary,” he said. “I think to open that process will give the administration the benefit of more solutions and informing their decisions.”

Milne admits past health, legal troubles

MONTPELIER — Republican gubernatorial candidate Scott Milne revealed in a statement to reporters Thursday that he was arrested three times in college and suffered a stroke in 2006.

The arrests, two for driving under the influence of alcohol and one for possession marijuana and cocaine, all resulted in convictions. Milne said in a telephone interview Thursday that the cases were “settled as expeditiously as possible without spending money on counsel.”

“I don’t think about them on a daily basis, but my presumption is they are part of the public record,” he said.

In 2006, Milne suffered an ischemic stroke caused by a blood clot in his brain. He said he has made a full recovery, suffers “very little residual effect,” and has been cleared by doctors to campaign and serve as governor.

“Basically, I have a little bit of numbness on one side of my buddy and that really is about it,” Milne said.

He gave credit for his recovery to his daughter who he said sought immediate medical attention when the stroke occurred.

Milne, who has yet to formally launch his campaign, said he wanted the information about his past to be out in the open. He said facts about his past “might be important and relevant” to supporters.

Scott Milne

Scott Milne

“I think we wanted to get it out. If we started to campaign earlier we would have sent it out a lot earlier,” he said. “It was a consideration when I was weighing whether or not to run.”

Milne, in the statement sent to reporters, said “Vermonters have a right to a governor who is upfront and transparent.” He promised transparency about his personal life as well as the “economic challenges and crisis of affordability we face as a state.”

Brock bows out

MONTPELIER — Republican Randy Brock, the Vermont GOP’s nominee for governor in 2012, announced in an email Sunday that he will not challenge Democratic Gov. Peter Shumlin again this year.

Brock, a former state auditor and state senator, had been publicly mulling a run. His decision comes after Stowe Rep. Heidi Scheuermann and former Wall Street executive Bruce Lisman already bowed out this year.

Scott Milne, president of Milne Travel, is the only other known Republican considering a run. Milne has said he wants a primary, however.

“I will not be a candidate for Governor of Vermont in 2014,” Brock wrote in his email. “This decision has not been easy to reach. I have arrived at it over several months after careful thought, much input and serious deliberation.”

Brock lost the 2012 race to Shumlin after winning only 38 percent of the vote after putting about $300,000 of his own money into the campaign. Brock said he was not prepared to pump his own cash into a race this year.

He said he is opting out of challenging Shumlin again this year despite persistent urging to do so from supporters.

Randy Brock

Randy Brock

“I am thankful to the many Vermonters who have called upon me to run. I have heard from people from all over our state offering words of encouragement,” he wrote. “This outpouring of support from so many has been extremely heartening and I will always be grateful for their unwavering loyalty.”

Brock, noting that his name will not appear on a ballot for the first time in 10 years, said he will miss being out on the campaign trail. But, sitting the election out “is the right decision for me and my family,” he said.

He pledged to remain “involved in helping to shape public policy.” The former auditor also said he plans “to continue to contribute to the debate through critical analysis and commentary.”

Another exchange deadline to be missed

MONTPELIER — Change of circumstance functionality expected to go live this weekend on Vermont Health Connect will not be deployed as testing continues, according to Department of Vermont Health Access Commissioner Mark Larson.

The state’s vendor, CGI, was supposed to have the change of circumstance function live on the health insurance exchange website by May 21 based on an amendment to the original contract. But the state reached an agreement on a revised work plan to extend the deadline to June 8. Now there is a new delay.

“We’re making very good progress on the development of the functionality and we’re close with automated change of circumstance functionality, but have made the decision that it’s not ready to go this weekend into the live environment,” Larson said Friday.

When deployed, the upgrade will allow thousands of Vermonters to edit personal information online if mistakes were made during registration, or if they experienced a life-changing event such as marriage. A backlog of 10,000 requests has amassed since the site launched in October.

“It’s important to us to make sure that the functionality, when it’s ready to go, is ready to serve Vermonters well. So, we’re going to continue our work until we feel like it’s ready to serve Vermonters, and focus on the quality and thoroughness of our work at this point,” Larson said.

Rep. Michael Fisher

Rep. Michael Fisher

The delays are frustrating lawmakers, including House Health Committee Chairman Michael Fisher, D-Lincoln.

“I think this is a really serious problem and I think it’s really an unacceptable situation that we’re in right now. Ten thousand households, many of whom may have small inconsequential changes, a change of address or something, but many of these Vermonters are worried that they’re not going to be able to get the care that they need,” Fisher said.

Continued issues and delays with the exchange site could damage future health care reform efforts, he said.

“I just know that there’s a lot of worry out there and a lot of frustration and I have been hearing a lot of it,” Fisher said. “It really does impact people’s view of our ability to move forward on health care reform.”

Meanwhile, the state is negotiating with a new vendor to help the state deal with the backlog in change of circumstance requests. The backlog increased by about 2,000 requests in the last month or so.

The contract, details of which remain confidential as negotiations continue, was expected to be signed by the end of Friday, Larson said. It will provide additional workers to help users update their information.

“It will help in the ability to have the automated functionality be able to assist in the work of resolving the backlog of change of circumstance requests. It will make it faster, but it will not eliminate the work left to do in making sure that we respond to all of those Vermonters who have made requests,” he said.

State officials expect users will still want assistance in changing information once the functionality is deployed.

“We fully expect that there will be a lot of people who will continue to want assistance in that process and we’ll be able to be more efficient with that,” he said. “It’s still going to take a significant effort to respond to everybody.”

Larson said he would not provide a specific date when testing will be completed and the system can be upgraded. “I think we are hopeful that we will be able to deploy this functionality soon. Again, we really have made a significant amount of progress,” he said.

neal.goswami@timesargus.com

Lisman declines gov bid

MONTPELIER — Campaign for Vermont founder and former Wall Street executive Bruce Lisman announced Wednesday he will not launch a bid to unseat Gov. Peter Shumlin.

Lisman, the former chairman of the JP Morgan Chase Global Equity Division, said he was considering a campaign for governor at the urging of Vermonters. But in a statement issued Wednesday Lisman said he will instead focus on advocacy efforts.

“I love Vermont and believe that she faces serious challenges as seldom before in her history,” Lisman said in his statement. “At this time, however, I believe I can best contribute to improving Vermont’s future by publicly and vigorously advocating for a focused, core set of moderate, nonpartisan and common sense government reforms. Indeed, this coalition building effort is the best approach to policy change and consistent with my focus since 2011.”

Bruce Lisman

Bruce Lisman

Wednesday’s announcement follows on the heals of one made by Stowe Rep. Heidi Scheuermann, who just last week said she would not seek the GOP gubernatorial nomination and challenge Shumlin, a two-term Democrat.

Scott Milne, president of Milne Travel, and Randy Brock, a former state senator auditor and the GOP’s failed 2012 nominee, are the only other known Republicans considering a run.

Lisman was being viewed by Democrats as a serious challenger. The Vermont Democratic Party in recent months attacked Campaign for Vermont, a group that Lisman has pumped more than $1 million into, for being a conservative organization cloaked as a nonpartisan advocacy group.

Despite declining to run, Lisman’s announcement included an indictment of Shumlin’s tenure as governor, saying Vermonters are concerned about the state’s future. He said he plans to focus on the need for job growth and economic development, comprehensive ethics standards in government, transparency in health care reform and reducing property taxes.

“The vast majority of Vermonters, from all different parts of the state and all different backgrounds, want to see expanded job opportunities and economic growth which stem from a stronger business environment, a return to responsible budget management, ethics standards in government, enhanced transparency, particularly on health care, and a better and more effective education system,” Lisman said.

The plans Lisman laid out in his announcement could set him up for a future run.

“I will focus on showcasing the public’s growing frustration about these issues and the need to implement tangible solutions for true change, change that Vermonters are demanding” he said. “Vermonters have made it clear they are not satisfied with the direction of the state and I will make it my mission to influence citizen-led forward progress.”

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.

House passes minimum wage bill, on way to gov’s desk

MONTPELIER — The Senate version of a minimum wage bill was passed by the House Friday night and will become law after it emerged as the only feasible option for boosting the incomes of the state’s lowest-paid workers.

Republicans agreed to suspend House rules Friday evening, allowing the bill to be taken up a day ahead of schedule. The plan — approved by the Senate on Monday — was passed by the House on a 132-3 vote and is now on its way to the governor’s desk after a bumpy few days.

The legislation will raise the minimum hourly rate to $10.50 in 2018. In the interim, the minimum wage will go from its current $8.73 per hour to $9.15 on Jan. 1. The wage would then go to $9.60, $10 and $10.50, respectively, over the next three years. Annual cost-of-living increases based on the consumer price index will occur each year thereafter.

The Senate version was reluctantly adopted by some Democrats and Progressives after all other options to raise the wage sooner were exhausted.

“We know we can do better. The House voted for what we thought was a better bill, but after a long process, this is the bill that we have. But, it accomplishes what we need to do,” Rep. Tom Stevens, D-Waterbury, said on the House floor Friday night, acknowledging the disappointment with the bill by some members.

Continue reading

Technicality stalls minimum wage debate

MONTPELIER — A misprint in the House calendar discovered late Thursday night doomed consideration of a minimum wage bill until Saturday, just as Democratic leaders ramped up efforts to corral an unruly caucus.

House Minority Leader Don Turner, R-Milton, made a point of order around 10:30 p.m., hours after debate had begun. But House Speaker Shap Smith said minority Republicans were correct, and ruled that action must be postponed and placed back on the calendar, making Saturday the next day the bill will see action.

Democratic leaders were looking to pass a scaled back minimum wage bill from the more ambitious plan they previously passed. The new plan, hashed out following a day-long back-and-forth between the House, Senate and governor’s office, is much closer to one favored by Gov. Peter Shumlin. Continue reading

GMO labeling bill signed into law

Jeb Wallace-Brodeur / Staff Photo  A large crowd of legislators and supporters cheers after Gov. Peter Shumlin signed a bill into law on Thursday outside the State House that requires the labelling of GMO ingredients in food. It is the first law of its kind in the nation to pass without so-called trigger clauses.

Jeb Wallace-Brodeur / Staff Photo
A large crowd of legislators and supporters cheers after Gov. Peter Shumlin signed a bill into law on Thursday outside the State House that requires the labelling of GMO ingredients in food. It is the first law of its kind in the nation to pass without so-called trigger clauses.

By JOSH O’GORMAN
MONTPELIER – Before a cheering crowd of hundreds, Gov. Peter Shumlin signed a first-in-the-nation food labeling bill into law, even as food producers continue to voice their opposition.
The front lawn of the Statehouse was filled with families and consumer advocates as Shumlin signed a law that will require the packaging of some foods to indicate if they contain genetically modified organisms, or GMOs.
“We will sign the first bill in America, joining 60 other countries, where Vermonters will have the right to know what’s in their food,” said Shumlin, who compared the law to Vermont begin the first state to abolish slavery and allow civil unions. Continue reading

Walz tapped for House seat

MONTPELIER – Tommy Walz, a former educator from Barre City, has been tapped by Gov. Peter Shumlin to replace former Rep. Tess Taylor.

Walz was picked from a list of three candidates submitted to Gov. Shumlin by the Barre City Democratic Committee.

“I am pleased to appoint Tommy Walz to fill this opening,” Shumlin said in a statement. “His long-term commitment and service to the Barre community will make him an excellent voice for his constituents in the Vermont House of Representatives.”

Walz first moved to Barre in 1967 to teach English and German at Spaulding High School. He and his wife Leslie moved several times, including a stint living and working in Germany. Walz came returned to Vermont in 1979 where he again taught English at Spaulding High School before working in computer sales and data consulting.

“I am proud to be joining the Barre contingent in the Vermont House of Representatives,” Walz said in a statement. “Barre has given us much and Leslie and I have had the chance to return some small measure through volunteering and serving on local school boards. Representing the people of Barre City in the Vermont House provides yet one more way for me to serve my community.”

Walz currently serves on the Barre Supervisory Union Board and the Spaulding High School Board.

Taylor resigned from her seat in the House last month to serve as the executive director of Vermont’s Coalition for Universal Reform. The newly formed group is planning a push for Shumlin’s universal, publicly-financed health care plan.

Shumlin’s office said Walz will be sworn in “promptly.”

State, CGI sign amended contract with new timeline and penalties

MONTPELIER — State officials and the contractor building Vermont Health Connect have signed off on a new agreement that sets a new schedule for launching missing functions and includes additional financial penalties for missed deadlines.

The amended contract with tech giant CGI was signed Tuesday by Department of Vermont Health Access Commissioner Mark Larson and Gregg Mossburg, a senior vice president with the firm.

Under the amended contract, CGI must deliver “change of circumstance” functionality by May 21. By July 2, small business functionality must be operational. Failure to deliver by those dates will result in new financial penalties on top of the $5 million in “liquidated damages” the state has already claimed for CGI’s incomplete work.

“We really were trying to define an achievable road map and pair it with payment provisions and financial accountability so that we have an achievable plan and one that preserves for the state accountability for the success of that plan,” Larson said Thursday.

Lawrence Miller

Lawrence Miller

Vermont Health Connect, the state’s online health insurance marketplace required under the federal Affordable Care Act, launched last October with serious deficiencies. Users are still unable to edit their information, and small businesses must enroll directly with the state’s two insurers because the website is not functional for them. The ability to make online payments for premiums was finally added in early March.

Secretary of Commerce Lawrence Miller, tapped by Gov. Peter Shumlin in January to assist the beleaguered exchange team, said the previous contract with CGI “contemplated getting through development by October and everything being neat and clean.”

But late last year, after reviewing the state’s options, Miller and others began negotiating with CGI on a new contract that would help complete the project. Despite calls by Republicans to dump CGI, state officials determined that developing a new path with CGI was the best solution.

“There was this sort of fundamental question after December of do we finish the project with CGI or do we find somebody else. It was really clear, talking to other organizations and folks who have done this before, that the disruption of change, trying to change contractors, greatly exceeded the risk of negotiating a revised agreement and a revised path to done,” Miller said.

Massachusetts and the federal government have opted to drop CGI in favor of other tech firms. Other states are working with their contractors to redefine tasks and goals.

“When I’ve talked to people around the country, they are doing a combination of amendments to contracts and replacement of vendors. Everybody’s taking a slightly different approach. We did not consult with other states on the specifics of this,” Miller said.

Both sides “were pretty well firm on what was important to them,” according to Miller, but main components of the negotiated amendment “were not in substantial conflict.”

“Both parties wanted to finish the work and both parties recognized that this would be done in stages now,” he said.

Continue reading

Small biz direct enrollment to last through 2015 open enrollment

MONTPELIER — The Shumlin administration told lawmakers Tuesday that small businesses will have the option to continue directly enrolling in health care insurance plans during the next open enrollment period slated for this fall.

Director of Health Care Reform Robin Lunge delivered the update to the Senate Finance Committee early Tuesday afternoon. Mark Larson, commissioner of the Department of Vermont Health Access, delivered the same message later to the House Health Care Committee.

“The good news that I have is that the feds have approved the ability for us to continue with direct enrollment moving forward through the 2015 open enrollment period for 2016 plans and our intention is to allow this as an additional option,” Lunge said.

Direct enrollment with the state’s two insurance carriers was a contingency plan offered by Gov. Peter Shumlin when the state’s federally mandated online insurance marketplace, Vermont Health Connect, failed to function properly at launch last October. Small businesses were able to bypass the exchange and deal directly with insurers.

Employees of small businesses with 50 or fewer employees are required by state statute to obtain health insurance through Vermont Health Connect. But the website still does not allow for online enrollment. Administration officials say they expect it to be working when the 2015 open enrollment period begins in October.

Larson said the direct enrollment option is in no way an indication that the exchange website will still not be fully functional by October. Rather, it provides Vermonters with additional ways to enroll in qualified health insurance plans, he said.

However, direct enrollment with insurance carriers provides a limited choice of insurance plans. Individual using the website can choose from 18 plans between the two carriers. Small business employees can only choose from four plans.

Larson said the Centers for Medicaid and Medicare, which has approved the state’s request to continue direct enrollment, “is mindful of employee choice.” Larson said conversations with insurers are taking place to try and expand options.

“They are very interested in making sure that employees have the greatest ability to have choice in their plans as possible. That will be one of the conversations that we have, is how to do direct enrollment so employees continue to have access to as many plans as possible through their employer.”

House Health Care Committee Chairman Rep. Michael Fisher, following Larson’s appearance, said he is happy the direct enrollment option will be preserved for the next enrollment period.

“I can’t tell you how many times I’ve heard that this piece of IT structure or that piece will be ready in time, and so I don’t have any confidence that anything is going to work until I see it working,” he said. “I think Vermonters are comfortable going through the carriers directly and I’m pleased that the administration moved to a place that is supporting that. So, I think that’s a good thing.”

neal.goswami@timesargus.com

Online payments go live on state exchange

MONTPELIER — The state’s online health insurance marketplace is now accepting payment online for premiums, the Shumlin administration announced Monday.

Individual Vermonters enrolling in insurance plans on Vermont Health Connect, the online marketplace mandated under the federal Affordable Care Act, can now pay for monthly premiums online, according to the Department of Vermont Health Access. The site underwent an upgrade over the weekend, officials said.

Small businesses will continue to enroll directly through the state’s two insurers — Blue Cross Blue Shield and MVP Health Care.

The payment system will now allow Vermonters to pay premiums with a debit card, credit card or direct deposit from a bank account in addition to paper checks.

“This is great news for all Vermonters using VHC to enroll in health plans. Paying online provides convenience for Vermonters, and we’re pleased this functionality is now up and running. Our focus over the next month is to continue to enroll Vermonters through VHC,” DVHA Commissioner Mark Larson said in a statement.

Administration officials said additional system upgrades over the weekend will allow VHC staff to better process applications and provide a better overall experience for users.

The addition of online payments comes months after the site launched last Oct. 1. At launch, the site experienced significant technological failures that prevented most users from selecting plans. Small businesses can still not enroll on the site and must do so directly through insurers.

GOP leaders seek federal investigation into exchange

MONTPELIER — Republican leaders in the Legislature are seeking a federal investigation into Vermont Health Connect based on an anonymous tip that a state contractor duped state officials last year.

House Minority Leader Don Turner of Milton and Senate Minority Leader Joe Benning of Caledonia County sent a letter Wednesday to Tristram Coffin, the U.S. Attorney for the District of Vermont, requesting the investigation. The request is based on “whistleblower allegations alleging a fraudulent software demonstration on July 26, 2013 by CGI Technologies & Solutions.”

Newsweek published an article earlier this month in which an anonymous source said a demonstration by CGI last July designed to show connectivity with the state’s online insurance marketplace with a federal data hub was faked.

The exchange site, for which CGI has an $84 million contract to build, is still not fully functional, the GOP leaders wrote in their letter.

“We believe the unexplained and extensive delay, coupled with evidence suggesting the company in charge of designing the system may have duped Vermont officials into incorrectly thinking that the software system was working and on schedule, constitutes sufficient legal and factual predicate to begin a federal investigation,” they wrote. “If true, such a fraud prevented state officials from performing proper contractual oversight, prevented corrective measures, and helped CGI retain its multi-million dollar contract with the state.”

Mark Larson, commissioner of the Department of Vermont Health Access, has maintained that the July demonstration did feature a live connection with the federal data hub.

Linda F. Odorisio, vice president of communications for CGI, said in an emailed statement Wednesday evening that the demonstration did connect the state site to the federal hub.

“CGI confirms that the demonstration conducted on July 26, 2013 included a live interface to the Federal Data Services Hub, with the real time sending and receiving of data,” she wrote.