Massachusetts and Vermont are withholding payments and considering legal options against the contractor that set up the states’ problem-plagued health insurance websites.
Massachusetts has paid $11 million of its $69 million contract with CGI Group, a Montreal-based information technology company.
Jason Lefferts, spokesman for the Commonwealth Health Connector, the state’s insurance marketplace, tells The Boston Globe not another penny will be paid until a functioning website has been delivered.
Massachusetts has reverted to using an alternative software system and paper notifications for residents seeking new insurance.
In Vermont, state officials recently alerted CGI that the state is withholding payments of $5.1 million as compensation for the company’s failure to meet key deadlines.
A CGI spokeswoman says the company is working to fix state websites and has already improved performance.