Maryland has fired the contractor that built its expensive online health insurance marketplace, which has so many structural defects that officials say the state might have to abandon all or parts of the system.
The Maryland Health Benefit Exchange voted late Sunday to terminate its $193 million contract with Noridian Healthcare Solutions. Columbia-based Optum/QSSI, which the state hired in December to help repair the flawed exchange, will become the prime contractor, while Noridian will assist with the transition.
“We worked very hard with [Noridian] to find a path forward,” said Isabel FitzGerald, the Cabinet secretary in charge of information technology. “And the decision now is that we are just not making the progress that we had hoped.”
Wonder if they’ll get their money back?
As of Monday, Maryland had paid Noridian $67.9 million for its work and had unpaid invoices totaling $12.9 million, state health officials said.
Maryland “is preserving all rights to seek damages against Noridian and its subcontractors for problems with the IT system,” Joshua M. Sharfstein, state secretary of health and mental hygiene, said Monday before a legislative panel that is monitoring the exchange.