Nevada’s imploding state-run Obamacare exchange is the latest to shut down and join HealthCare.gov for 2015.
The board of the Silver State Health Insurance Exchange voted Tuesday to fire Xerox, which received a $75 million contract to build the struggling Obamacare exchange, and to use the federal government’s infrastructure, HealthCare.gov, for open enrollment in 2015.
The exchange will remain, technically, state-based, but the federal government will determine eligibility and enrollment functions during the 2015 open enrollment period. Nevada will take the next year to consider adopting an exchange model that’s working successfully in another state exchange.
“The [exchange] Board’s decision today is extremely disappointing,” Xerox said in a statement. “Xerox has been unwavering in its commitment to Nevada Health Link and to getting all aspects of the exchange right. We have engaged the full breadth of Xerox’s resources and have brought in external experts to meet that goal.”
The Nevada Obamacare outlet has struggled since its October launch to keep its website running. Frequent crashes, a failure to communicate customer enrollments to insurance companies, duplicate enrollments and miscalculated tax credits have plagued the exchange over the past seven months.
The problems have spawned a class action lawsuit against the Nevada exchange and a delay of the state’s open enrollmnet period through the end of May. (RELATED: Another state extends Obamacare enrollment deadline)
The lead attorney suing the state Obamacare exchange released emails last month alleging officials from Xerox and the exchange itself discussed dropping all Nevadans who signed up for coverage and asking them to reapply once the website was fixed. (RELATED: Report: Nevada Obamacare exchange considered dumping all customers)
Nevada isn’t alone in joining the federal Obamacare system after a disastrous attempt at building its own state-run website. Oregon officials have opted to permanently join HealthCare.gov, scrapping its $305 million state-run exchange entirely. (RELATED: Oregon to drop its disastrous Obamacare exchange, join HealthCare.gov)
Massachusetts officials are attempting to rebuild their formerly operational health care exchange in the several months remaining before the next open enrollment period, but if unsuccessful, they too will be joining HealthCare.gov for 2015.
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