Health Insurance Exchanges: Litigation to Follow and How to Avoid It Next Time


First you have the problem and then you have the litigation. This more-or-less iron rule of American life will be honored once again in the aftermath of the “roll out” of Obamacare.

The design and operational failures of the federal insurance exchange and comparable failures of a number of state exchanges will generate contract disputes and litigations. The issues in these disputes will span the spectrum of government contract issues: from design defect claims to claims for delay damages and for additional compensation based upon changes in contract scope and requirements. All of this is sufficiently predictable, if not certain, that both the government contracting parties (purchasers) and their respective IT vendors and consultants should start preparing now for this next chapter in the troubled “roll out” of healthcare reform.

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