BUSINESS

Maryland officials say contractor to pay $45M over flawed health exchange website

07/21/2015 02:21 EDT | Updated 07/21/2016 05:59 EDT
ANNAPOLIS, Md. - Maryland officials say the main contractor in the state's initially flawed health care exchange website has agreed to repay $45 million to avoid legal action over its performance.

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.