WBAL is reporting that the main contractor in Maryland's initially flawed health care exchange website has agreed to repay $45 million to avoid legal action over its performance, officials announced Tuesday.
Maryland's website crashed right after opening Oct. 1, 2013, as part of President Barack Obama's health care law, and it wasn't the only state to have problems. Oregon and Nevada abandoned their state-run exchanges and now use the federal one.
Noridian Healthcare Solutions agreed to pay $20 million upfront, Maryland Attorney General Brian Frosh said. The rest will come in yearly installments of $5 million for five years. The payments represent a recovery of 61 percent of the total paid to the company for the failed website.
"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 of Noridian. "This settlement sends a message that the performance was unacceptable, and that those responsible will be held accountable."
The state later rebuilt its website with other technology.
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