States Withhold Payments to Firms Behind Healthcare Sites

Massachusetts, Vermont consider legal options

Even as President Obama's health insurance website limps to recovery, at least two states that used the same contractor and are still plagued with malfunctions — Massachusetts and Vermont — are taking preliminary steps to recoup taxpayer dollars.

Massachusetts officials are reviewing legal options against CGI Group, a Montreal-based information technology company, and will make recommendations on how to seek financial redress at a Jan. 9 meeting.

So far, the state has paid $11 million of its $69 million contract with CGI. It will not pay a penny more until a functioning website has been delivered, said Jason Lefferts, spokesman for the Commonwealth Health Connector, the state's insurance marketplace.