WASHINGTON Nov 27 The U.S. government is
switching providers of Web hosting services for the troubled
HealthCare.gov website, replacing Verizon Communications Inc's
Terremark subsidiary with Hewlett-Packard Co,
the Centers for Medicare and Medicaid Services said on
The contract with Terremark for the site's data center ends
in March 2014, and last summer - after CMS issued a "task
order," HP was the successful bidder, a CMS spokesman said in a
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 President Barack Obama's
signature reform law.
"CMS has begun the necessary activities to transition the
data center over to HP. We are working to ensure a smooth
transition between the two contractors," the CMS spokesman said.
The contract award happened several months before the
botched Oct. 1 launch of HealthCare.gov. The contract was first
reported by the Wall Street Journal.
Verizon has received $55.4 million for its work on the
healthcare marketplaces since its contract started in 2011,
according to federal contracting records show.
Both companies declined comment, as did the White House,
which referred questions about the contract to CMS.
The Obama administration has said it plans to have the
website working smoothly for most users by this weekend. The CMS
spokesman did not respond to questions about whether the
transition between data center providers would affect the
(Editing by Christopher Wilson)