Maryland recovers $81 million from Medicaid technology contractor

The state of Maryland recovered $81 million from a contractor that officials said botched efforts to rebuild the state’s Medicaid computer system, Attorney General Brian Frosh announced Friday.

The state terminated its $170 million contract with Computer Sciences Corp. in 2015 after complaining for a year about the company’s work. The state had already paid about $27 million to the company, much of it coming from federal funds.

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 $10 billion paid out to Medicaid providers each year.

“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.”

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