Maryland recovers $81 million from Medicaid technology contractor
The state terminated its
Frosh sought to recover not just the amount directly paid to CSC but millions more that the state and federal governments spent patching the existing system. The system was built in 1992 and is still used today by the state health department to manage Medicaid accounts, including the
"We are pleased with the settlement, but the state's damages were considerably more in this case," Frosh said after the settlement was announced. "There was not only the amount paid to CSC but the amount the state had to pay to fix the system afterward and put it in shape so it could be used."
Frosh had sought
CSC officials declined to comment Friday.
Frosh said the settlement resolves claims by both the state and the company.
The total value of the work was estimated at
CSC merged with the Enterprise Services business of
Frosh said the state will work with federal officials to divide the recovered money. Federal agencies had paid about 90 percent of the costs, officials said at the time the contract was terminated.
"They funded a lot of the project, and we'll have to negotiate how much the feds get," Frosh said. "Our ultimate expenses exceeded
The settlement comes several years after Frosh settled another claim for
State officials had envisioned one website for people to sign up for private insurance coverage or enroll for or renew their Medicaid plans if their incomes were low enough to qualify for government benefits. The health exchange and the Medicaid systems are now linked.
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