Feds subpoena state records for probe into troubled Oregon ObamaCare website

May 5, 2014: Screen grab from Cover Oregon's website. (cover oregon)

PORTLAND, Ore. – Federal prosecutors have subpoenaed state records for a grand jury investigation of the troubled Cover Oregon health insurance website, the governor's office said Tuesday.

The state abandoned its plans for an independent online exchange after it failed to launch and Cover Oregon and its independent contractor, Oracle Corp., couldn't fix it. Oregon decided to switch to the federal portal, the first state to do so.

The governor's office released subpoenas Tuesday issued by the U.S. attorney's office. The subpoenas were issued to both Cover Oregon and the Oregon Health Authority, which originally developed the exchange.

They demand records of communications between state officials involved in developing the website, five of whom have resigned.

They also demand communications with the federal government about the status or functionality of the website and communications about federal funding reviews and lists of people attending them.

An investigation ordered by Gov. John Kitzhaber found state managers failed to heed reports about problems that prevented the website from launching.

Kitzhaber's general counsel Liani Reeves said in a letter to the U.S. attorney's office that the state would "fully comply" with the subpoenas.

"The governor is committed to a thorough review of Cover Oregon to ensure the appropriate accountability and oversight for the public investment made in the Cover Oregon website," Reeves wrote.

Cover Oregon and Oregon Health Authority released a joint statement: "The agencies take this request seriously and will cooperate fully with federal officials. We will work collaboratively with the U.S. attorney's office to provide any and all information we have and make any and all staff available to assist."