There’s a new controversy linked to ObamaCare after explosive allegations against the Oregon health insurance exchange surfaced.

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Former Oregon state lawmaker Patrick Sheehan (R) contacted the FBI after a whistleblower alleged that a Cover Oregon project manager misled the feds into thinking it was further along in the website process. The person claimed that the project manager created dummy webpages in an effort to receive millions of dollars in federal funding. reports:

Early in its life, Cover Oregon was given a $48 million “early innovator” grant from the federal government. That amount would later grow to $59 million.

There were a few strings attached though. 

To keep the money flowing, the website would have to hit specific benchmarks between 2011 and 2013. The state needed to show the feds it had picked a company to provide software and technical assistance; it had to demonstrate that the website was safe from hackers; and, most importantly, it had to show that people could actually sign up for insurance on the website. 

The evidence these marks had been reached would be presented during a process called “gate reviews.”


What that meant for the Cover Oregon website was that it was able to paint a picture of a flashy website – imagine a concept car that looks flashy in the showroom but doesn’t actually run.

But documents uncovered by the KATU Investigators show [Carolyn] Lawson hadn’t actually figured out how to build the site, even as she was promising the federal government – and her bosses – that Cover Oregon’s website was going to work.

If those allegations are true, Sheehan told Gretchen Carlson that someone will likely go to jail.

He said lawmakers were never shown the functional website that was detailed in some of the reports. To this day, Oregon’s exchange website is still not working.

In a letter to Governor John Kitzhaber, Sheehan called for Carolyn Lawson’s resignation. She has since stepped down for personal reasons.

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