Obama administration preparing to take over Oregon’s broken health insurance exchange

The Obama administration is poised to take over Oregon’s broken insurance exchange, according to officials familiar with the decision, who say that it reflects federal officials’ conclusion that several state-run marketplaces may be too dysfunctional to fix.

In public, the board overseeing Cover Oregon is scheduled to vote Friday whether to join the federal insurance marketplace that already sells health plans in most of the country under the Affordable Care Act. Behind the scenes, the officials say, federal and Oregon officials already have privately agreed that closing down the system is the best path to rescue the state marketplace, the country’s only one to fail so spectacularly that no residents have been able to sign up for coverage online since it opened early last fall.

The collapse of Oregon’s insurance marketplace comes as federal health officials are also focusing intensely on faltering exchanges in two other states, including Maryland.