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 is a spokesman for the Commonwealth Health Connector, the state's insurance marketplace.
“Right now we’re holding the vendor accountable for their under-performance and we are going to continue to apply nonstop pressure to work to fix defects and improve performance,” said Lefferts.
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.