Tue April 22, 2014
MD Health Exchange High Tech Cost
ANNAPOLIS, Md. (AP) - A breakdown of spending on Maryland's troubled health exchange shows that more than $90 million of the nearly $130 million cost so far has gone toward technology expenses.
Officials, including Gov. Martin O'Malley and Lt. Gov. Anthony Brown, who was in charge of implementing the reform, have said the website is a small part of the exchange. But The Washington Post reports a breakdown provided by Dr. Joshua Sharfstein, the state's health secretary, shows the state spent $129.8 million to build and run its exchange, and technology was the biggest expense, $91.7 million.
Most of that money, $72.1 million, went to Noridian Healthcare Solutions, including $49.9 million spent developing the exchange.
Officials say the exchange is so flawed that it would be cheaper to replace than fix.