Md. Health Exchange Contractor to Pay $45M

     (CN) – The main contractor responsible for Maryland’s initially flawed heath exchange website agreed to repay $45 million to avoid legal action over its performance, the state attorney general announced Tuesday.
     Under the terms of the agreement, Noridian Healthcare Solutions will pay $20 million upfront, and an additional $25 million in annual installments of $5 million over five years. The payments represent a recovery of 61 percent of the total paid to the company for the failed web site development, Attorney General Brian Frosh said.
     “This company never delivered on what it promised, and, as a result, tens of millions of taxpayer dollars were wasted, and thousands of Marylanders suffered delays and frustration,” Frosh said in a written statement.
     “This settlement sends a message that the performance was unacceptable, and that those responsible will be held accountable,” he added.
     Maryland’s website crashed right after it went online on Oct. 1, 2013. The state later rebuilt its website with other technology.
     The agreement is subject to regulatory approval. Frosh said his office is continuing to investigate claims against other companies involved in the development and implementation of the failed version of the exchange.
     In a statement of his own, Tom McGraw, president and CEO of Noridian, said “this settlement allows us to move forward and focus on our core business of processing health care claims and providing related administrative services.”

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