Canadian-linked firm loses Obamacare website contract

A man looks over the Affordable Care Act (commonly known as Obamacare) signup page on the...

A man looks over the Affordable Care Act (commonly known as Obamacare) signup page on the HealthCare.gov website in New York in this October 2, 2013 photo illustration. REUTERS/Mike Segar/Files

QMI Agency

, Last Updated: 3:46 PM ET

The Obama administration is terminating its contract with a Canadian-linked tech firm following the Obamacare website fiasco.

CGI Federal, a U.S. subsidiary of Montreal-based CGI Group, Inc., was partly blamed for website glitches that frustrated millions of Americans and embarrassed President Barack Obama

A news report out of Washington says federal authorities have concluded CGI Federal can't resolve the glitches with the Healthcare.gov website.

Obama's landmark plan requires millions of uninsured Americans to buy health insurance.

The president had promised the website would make shopping for plans as easy as buying televisions.

But in pre-launch tests, the website was unable to consistently handle even 500 users at a time.

When the site was launched Oct. 1, it frustrated users with error messages and slow responses.

The failures were so widespread that an embarrassed Obama suggested Americans register by phone.

Some 7 million people are expected to sign up for Obamacare in 2014.

An executive with CGI Federal told a congressional panel in October that more testing would have been preferable for such a large system.

But the tech firm's senior vice-president, Cheryl Campbell, said CMS, the agency implementing the portal, determined the testing schedule for Healthcare.gov.

Federal authorities are reportedly preparing to sign a new one-year, $90-million contract with U.S.-based Accenture to take over website management.

— With files from Brian Daly


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