Congressional panel releases critical Cover Oregon report

  • Associated Press
  • Wednesday, May 25, 2016 8:31am
  • Local News

SALEM, Oregon — A U.S. House committee has found former Gov. John Kitzhaber and a federal agency mishandled the creation of Oregon’s health insurance enrollment website, with the Democratic governor’s political advisers making decisions based on his re-election campaign.

In a report released Wednesday, the committee said it’s asking the Justice Department and state attorney general to conduct criminal investigations into the actions involving Cover Oregon.

“More than $305 million in federal taxpayer dollars were sent to Oregon state for purposes of implementing a state exchange to benefit the people,” the committee said in a letter to U.S. Attorney General Loretta Lynch. “The state exchange never came to fruition, and the money is gone.”

The Republican-controlled Committee on Oversight and Government Reform said its investigation showed state officials misused federal money and improperly commingled official and political resources to enrich Kitzhaber’s political prospects.

Oregon produced the country’s worst rollout of the new national health insurance program. While the crippled federal website eventually worked, Oregon’s failed to enroll a single person online. The state had to resort to hiring 400 people to process paper applications.

The Centers for Medicare &Medicaid Services’ “failed oversight of the development and implementation of Cover Oregon resulted in millions of wasted taxpayer dollars,” the committee said. The federal agency should reform its grant and oversight process, the panel said.

The committee said documents and testimony it obtained are consistent with the findings of the Government Accountability Office, a congressional watchdog agency. The committee report also noted Cover Oregon is not unique.

“Several other states have had significant problems developing and implementing a health insurance exchange,” the report said.

An email seeking comment from Kitzhaber early Wednesday morning through his fiancée, Cylvia Hayes, wasn’t immediately returned. Representatives from CMS also didn’t immediately return a request for comment.

In other findings, the committee said:

Oregon decided the state should establish a state-based system and was awarded more than $300 million in federal grants, but the state-supported platform was then abandoned for HealthCare.gov, a federal platform, and was permitted to use it for free.

Officials with the Centers for Medicare &Medicaid Services applauded the progress at Cover Oregon and awarded the project additional federal dollars even as the quality assurance vendor rated the project as “high risk.”

State officials and Kitzhaber’s campaign advisers “collaborated to such an extent that the lines between official and political activities became blurry.”

The Centers for Medicare &Medicaid Services didn’t adequately monitor and address the “excessive involvement” of Kitzhaber’s staff and campaign advisers in Cover Oregon policy decisions.

Kitzhaber’s re-election campaign was concerned about media coverage of Cover Oregon and wanted to change the narrative.

Kitzhaber resigned in February 2015 amid allegations that his fiancee, Cylvia Hayes, did private consulting work for organizations seeking to influence state policies. The report noted discussions about Cover Oregon often included individuals with no authority over the matter, and it found that at least one email included Hayes, “who did not have any Cover Oregon role or responsibilities.”

In March 2015, Gov. Kate Brown signed legislation dissolving Cover Oregon.

Talk to us

> Give us your news tips.

> Send us a letter to the editor.

> More Herald contact information.

More in Local News

Trader Joe’s customers walk in and out of the store on Monday, Nov. 20, 2023 in Everett, Washington. (Olivia Vanni / The Herald)
New Trader Joe’s opens this week at Everett Mall

It’s a short move from a longtime location, essentially across the street, where parking was often an adventure.

Ian Bramel-Allen enters a guilty plea to second-degree murder during a plea and sentencing hearing on Wednesday, March 6, 2024, at Snohomish County Superior Court in Everett, Washington. (Ryan Berry / The Herald)
‘Deep remorse’: Man gets 17 years for friend’s fatal stabbing in Edmonds

Ian Bramel-Allen, 44, pleaded guilty Wednesday to second-degree murder for killing Bret Northcutt last year at a WinCo.

Firefighters respond to a small RV and a motorhome fire on Tuesday afternoon in Marysville. (Provided by Snohomish County Fire Distrct 22)
1 injured after RV fire, explosion near Marysville

The cause of the fire in the 11600 block of 81st Avenue NE had not been determined, fire officials said.

Ashton Dedmon appears in court during his sentencing hearing on Tuesday, March 5, 2024, at Snohomish County Superior Court in Everett, Washington. (Ryan Berry / The Herald)
Everett Navy sailor sentenced to 90 days for fatal hit and run

Ashton Dedmon crashed into Joshua Kollman and drove away. Dedmon, a petty officer on the USS Kidd, reported he had a panic attack.

A kindergarten student works on a computer at Emerson Elementary School on Wednesday, Feb. 28, 2024, in Everett, Washington. (Ryan Berry / The Herald)
‘¡Una erupción!’: Dual language programs expanding to 10 local schools

A new bill aims to support 10 new programs each year statewide. In Snohomish County, most follow a 90-10 model of Spanish and English.

Logo for news use featuring the Tulalip Indian Reservation in Snohomish County, Washington. 220118
Woman drives off cliff, dies on Tulalip Reservation

The woman fell 70 to 80 feet after driving off Priest Point Drive NW on Sunday afternoon.

Everett
Boy, 4, survives fall from Everett fourth-story apartment window

The child was being treated at Seattle Children’s. The city has a limited supply of window stops for low-income residents.

People head out to the water at low tide during an unseasonably warm day on Saturday, March 16, 2024, at Lighthouse Park in Mukilteo, Washington. (Ryan Berry / The Herald)
Everett shatters record high temperature by 11 degrees

On Saturday, it hit 73 degrees, breaking the previous record of 62 set in 2007.

Snohomish County Fire District #4 and Snohomish Regional Fire & Rescue respond to a motor vehicle collision for a car and pole. The driver was pronounced dead at the scene, near Triangle Bait & Tackle in Snohomish. (Snohomish County Sheriff’s Office)
Police: Troopers tried to stop driver before deadly crash in Snohomish

The man, 31, was driving at “a high rate of speed” when he crashed into a traffic light pole and died, investigators said.

Alan Dean, who is accused of the 1993 strangulation murder of 15-year-old Bothell girl Melissa Lee, appears in court during opening statements of his trial on Monday, March 18, 2024, at Snohomish County Superior Court in Everett, Washington. (Ryan Berry / The Herald)
31 years later, trial opens in Bothell teen’s brutal killing

In April 1993, Melissa Lee’s body was found below Edgewater Creek Bridge. It would take 27 years to arrest Alan Dean in her death.

Logo for news use featuring the municipality of Snohomish in Snohomish County, Washington. 220118
Man dies after crashing into pole in Snohomish

Just before 1 a.m., the driver crashed into a traffic light pole at the intersection of 2nd Street and Maple Avenue.

Bodies of two men recovered after falling into Eagle Falls near Index

Two men fell into the falls and did not resurface Saturday, authorities said. After a recovery effort, two bodies were found.

Support local journalism

If you value local news, make a gift now to support the trusted journalism you get in The Daily Herald. Donations processed in this system are not tax deductible.