Attorney General Brian Frosh and Gov. Larry Hogan announced the agreement Tuesday between Maryland and Noridian Healthcare Solutions, which is based in North Dakota.
Maryland's website crashed right after opening Oct. 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 $20 million upfront. The rest will come in yearly installments of $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.