Oracle developed the software for Oregon's state exchange. (Oregon was one of the twenty-odd states that created its own exchange.) "Cover Oregon" (as it is known) has been an absolute disaster including a website that doesn't work. Despite the non-operational website, Oracle will now be suing Oregon for using its software while having unpaid bills. The state may countersue for the website problems.

Oracle Sues Oregon Over Obamacare Disaster

Oracle Corp. has sued the state of Oregon in a fight over the state’s health insurance exchange, saying government officials are using the technology company’s software despite $23 million in disputed bills.

Oracle’s breach-of-contract lawsuit against Cover Oregon was filed Friday in federal court in Portland. It alleges that state officials repeatedly promised to pay the company but have not done so.

The suit seeks unspecified damages.

Oregon’s health insurance enrollment website was never launched to the general public. State officials have blamed Oracle, but the company says the state’s bad management is responsible.

Gov. John Kitzhaber has called for the state to sue Oracle and recover some of the $134 million it’s already paid to the Redwood City, California, company.

In June, Oregon issued legal demands for documents that could become evidence in a possible lawsuit against Oracle.