The state of Oregon has signed a $2 million contract with a law firm and has begun collecting documents and evidence related to the shortcomings of its state-run health insurance exchange, suggesting the state is gearing up for a lawsuit against exchange contractor Oracle.
Legal demands for evidence were issued Monday, though state officials declined to comment on the details of any potential suit, according to a report in the Washington Times.
In April, the board overseeing Oregon's health insurance exchange voted to abandon its glitch-ridden state-run site in favor of relying on Healthcare.gov. By that point, the state had spent at least $134 million on its exchange site, and another $7 million processing paper applications after Oracle was unable to repair the site's technical problems.
In May, Gov. John Kitzhaber (D) announced his desire to file a suit against Oracle, blaming the company for the exchange's troubles and the subsequent expenses encountered by the state.
Oracle has stated it is not responsible for the failed launch of the insurance exchange.
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