Oregon seeks court order to maintain Oracle's Medicaid-hosting contract - News - MailTribune.com - Medford, OR

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2015-02-26

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0 of 3 Premium Clicks used this month SUBSCRIBE Print + Online Subscriber Activation  |  Register x Forgot Password | Need an Account? e-edition | subscribe | newsletter | deals Home News Latest Stories Absenteeism in Oregon schools prompts bill that would tie funding to attendance, not enrollment Medford police arrest gang member and his brother after short chase Territorial Seed contribution a boost for SOU food program DEA seeks to seize houses in multistate pot trafficking operation Man sentenced for shooting cat with arrow Crime, Courts and Emergency Services Medford police arrest gang member and his brother after short chase DEA seeks to seize houses in multistate pot trafficking operation Man sentenced for shooting cat with arrow Emergency services, Feb. 25 Two dogs perish in east Medford house fire Politics and Elections Ballots on Jackson County marijuana tax go out Friday Brown's inauguration brings hope to local lawmakers Kate Brown sworn in as Oregon's 38th governor Gov. 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Lawyers representing Oregon told Marion County Circuit Judge Courtland Geyer during the first of a two-day hearing that Oracle's plans to pull hosting services would result in Medicaid enrollment grinding to a halt. That, in turn, would cause "irreparable harm" to thousands of people who would not be able to enroll in Medicaid and access health services, said attorney Lisa Kaner, who represents the state. The state wants a court order forcing Oracle to extend the hosting contract. The Medicaid system runs on parts of the technology that Oracle built for the Cover Oregon health insurance exchange. That exchange portal was never fully functional, but after it failed, the state continued to use parts of it for Medicaid enrollment. The system's hardware resides on servers that are hosted by Oracle. The contract to host that hardware expires Feb. 28. Witnesses for the state told the judge that Oracle managers orally promised Oregon officials five months ago that the hosting contract would be renewed for 12 months. Oregon officials acknowledged they did not get that promise in writing. Earlier this month, Oracle informed Oregon it would not renew the contract. Kaner called Oracle's decision a "capricious change of position." Oracle's lawyers said Oracle made no binding promises to renew the contract, only a promise to negotiate about it. Oracle's attorney Robert Shwarts blamed the Oregon Health Authority, which oversees Oregon's Medicaid program, for not having a contingency plan. He also said the company isn't obligated to continue hosting, because the contract does not contain a right-to-renew clause. "While Oracle is sympathetic to the state's issue, Oracle is a commercial actor ... and it has no legal obligation to do business with the state," Shwarts said. "It's the responsibility of Oregon to take care of Oregonians and to ensure that they have a (Medicaid) system in place. The contract expires on Saturday, and they knew that for a long time." Medicaid serves more than 1 million people in Oregon, about a quarter of the state's population. Coverage is good for 12 months and then must be renewed. Oregonians can sign up for or re-enroll in Medicaid year-round. Alex Pettit, the state's chief information officer, said at the hearing that the state tried last year to extricate its Medicaid system from Oracle, but the company rejected several proposals to do that. That, he said, left the state with only one option: renewing the hosting contract. "All our overtures to disengage from Oracle were rejected," Pettit told the judge. Pettit also said it would take about a year to switch to another hosting vendor, which is why the state didn't pursue that option. By Gosia Wozniacka The Associated Press MailTribune.com By Gosia Wozniacka The Associated Press Posted Feb. 25, 2015 at 2:00 AM » Comment or view comments   Reader Reaction »  STAY INFORMED   Email NewsLetter   Sign Up Today   Sign up for our newsletter and have the top headlines from your community delivered right to your inbox. calendar Connect with MailTribune.com Facebook Twitter RSS Back to top Reader Services Reader Services Home Subscriptions Subscriber controls Contact us Submissions Photos Events Letters to the editor Corrections Announcements Obituaries Story ideas Since you asked Alerts Email Alerts RSS Feeds Text Alerts Advertise Media Kit Home Products and services Ad rates Advertising contacts Mail Tribune Daily Tidings The Nickel Shop Our Valley Blogs Stay Informed   Email newsletter   Sign Up Today   Sign up for our newsletter and have the top headlines from your community delivered right to your inbox. 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