Governor Larry Hogan today announced that the prime contractor hired to build Maryland’s flawed health exchange website will pay $45 million to avoid legal action over its performance.
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Maryland’s exchange crashed when it launched and suffered ongoing technical problems, including a glitch that left up to 5,000 people thinking they were fully enrolled even though they weren’t, FierceHealthPayer previously reported. Other states had similar problems.
Noridian Healthcare Solutions LLC has chose to pay usd20 million out-of-pocket and a supplementary usd25 million in yearly regular payments of five dollars million over five-years, position professionals said. He added, “This settlement sends a message that the performance was unacceptable, and that those responsible will be held accountable” (Witte, AP/Sacramento Bee, 7/21).
But not everyone is pleased with the settlement.
The transactions symbolize cash award of 61 per cents along the net compensation to this company for your didn t make it website growth and initiate in 2013. The company was originally paid $73 million to develop the failed website, meaning it will still walk away having pocketed $28 million, according to the Office of Maryland’s Attorney General. Hogan said Maryland will continue to aggressively pursue other avenues to recover damages.
Meanwhile, Noridian said the settlement allows the company “to move forward and focus on [its] core business of processing health care claims and providing related administrative services” (Washington Post, 7/21). State and federal regulators must approve of the agreement.
Noridian Healthcare Solutions’ parent company, Noridian Mutual Insurance Company, agreed to guarantee at least $40 million of the settlement payment. The settlement agreement also releases Maryland from all contractual obligations with Noridian Healthcare Solutions.
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In February 2014, Maryland’s health exchange board voted to end their relationship with the company.
