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Contractor for Maryland health exchange website to pay $45M

Published:Tuesday | July 21, 2015 | 12:00 AM

Maryland, United States (AP):

Maryland officials say the main contractor in the state's initially flawed health care exchange website has agreed to repay US$45 million to avoid legal action over its performance.

Attorney General Brian Frosh and Governor Larry Hogan announced the agreement yesterday between Maryland and Noridian Healthcare Solutions, which is based in North Dakota.

Maryland's website crashed right after opening October 1, 2013, and later rebuilt it. Other states had similar problems. Oregon and Nevada abandoned their state-run exchanges and now use the federal one.

Frosh says the company has agreed to pay US$20 million upfront. The rest will come in yearly installments of US$5 million for five years.

Frosh says the payments represent a recovery of 61 per cent of the total paid to the company for the failed website.