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PEBB and OEBB update joint benefits system: vendor reset, stop‑work order and funding questions remain
Summary
State benefits boards told the Ways and Means Human Services Subcommittee they paused vendor work after quality problems, have initiated a vendor 'reset' with discovery workshops, and expect a revised timeline and cost proposal before resuming work; funding to date was drawn from administrative fees and about $11.5 million of baseline budgeted funds have been spent.
Ali Hassoun, executive director of the Public Employees’ Benefit Board (PEBB) and the Oregon Educators’ Benefit Board (OEBB), told the Ways and Means Human Services Subcommittee on Feb. 4 that the agencies are pursuing a joint benefits management system but have paused vendor work to reduce financial risk while the project is reset. "We are currently finishing our fourth of six workshops this week," Hassoun said, describing a discovery process intended to validate scope and requirements before a new contract amendment is considered.
The project was initiated after a 2017 technical assessment recommended replacement of aging, custom-built systems. Barry Burke, deputy director and project lead for the joint effort, said Oregon executed a vendor contract in 2022…
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