Troubled HealthCare.gov to switch website hosting to HP
Terremark's data center experienced issues in late October that caused outages across the system, prompting embattled Health and Human Services Secretary Kathleen Sebelius to phone Verizon's chief executive to discuss the problems.
Instead, slow response times, error messages and outages like the ones seen at Terremark's data center meant few Americans have been able to enroll so far.
CMS said its contract with Terremark had been set to end in March 2014. Last summer, several months before the botched Oct. 1 launch of HealthCare.gov, the agency issued a "task order" asking for bids. HP was awarded that contract, a CMS spokesman said in a statement.
Now, CMS needs to transition its data center to HP at a time when it is just beginning to dig out from a mountain of problems with the website, which is designed to let consumers shop for health insurance required under Obama's signature health care law.
Part of that upgrade involves doubling capacity so the website can handle 50,000 users at once.
Verizon has received $55.4 million for its work on the health care marketplaces since its contract started in 2011, according to federal contracting records.
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