April 24 (Bloomberg) — Oregon's health insurance exchange, plagued by computer flaws after federal taxpayers spent $303 million to build it, may be closed and the state's customers shifted to the federal marketplace.

Directors for the exchange, Cover Oregon, are scheduled to meet tomorrow to consider a recommendation that the state join the federal exchange, healthcare.gov. Cover Oregon's website never recovered from its technology woes, forcing tens of thousands of Oregon residents to apply for health plans using paper applications.

Once viewed as a trailblazer for the Patient Protection and Affordable Care Act known as Obamacare, Oregon was one of the first states awarded grants to build an insurance exchange. Cover Oregon's failure has spurred blame-trading between the state government and the project's main contractor, Oracle Corp., the biggest maker of database software, and imperils the re-election of Governor John Kitzhaber, a Democrat.

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