When Oregon Attorney General Ellen Rosenblum filed suit against Oracle America last year, she said the contractor“repeatedly lied and defrauded the state” during the course of its work on the failed Cover Oregon health exchange.
“Through this legal action, we intend to make our state whole and make sure taxpayers aren’t left holding the bag,” Rosenblum said in a statement.
The question, though, is which taxpayers?
The defunct health exchange website cost $300 million, all of it from federal grants. Which could mean that even if Oregon prevails in court and wins a judgment for the billions it is seeking, the state might not be able to keep any of it.
The head of the U.S. Centers for Medicare & Medicaid Services and two senior U.S. Senators implied as much in recent correspondence on the issue, including one letter dated today.