Flawed Maryland PPACA Exchange Cost Nearly $130M

Maryland spent nearly $130 million on its glitch-ridden health insurance exchange, according to a report from The Washington Post.

Technology expenses account for more than $90 million of that amount, Joshua M. Sharfstein, Maryland's secretary of health and mental hygiene, has indicated, according to the report. The state's exchange website crashed not long after it launched last fall. As of March 28, only 49,293 people had enrolled in private health plans through the exchange, far short of the 150,000 people Maryland had hoped to sign up by March 31.

The exchange's board of directors has decided to replace the technology behind the glitch-ridden Maryland Health Benefit Exchange, an action that is expected to cost an additional $40 million to $50 million, according to the report. Reps. Andy Harris (R-Md.), MD, and Jack Kingston (R-Ga.) have written to HHS Inspector General Daniel Levinson requesting an investigation into the "the flagrant waste and abuse of taxpayer monies" that funded Maryland's health insurance exchange.

A handful of other states — such as Oregon, Massachusetts, Nevada and Hawaii — have encountered technical problems with their exchange sites as well. However, most state-based health insurance exchanges have been successful, with several (Vermont, Connecticut and the District of Columbia) exceeding projected 2014 enrollment by March 1, according to a report from the Robert Wood Johnson Foundation and the Urban Institute.

More Articles on Health Insurance Exchanges:
5 State-Based PPACA Exchanges With Enrollment Problems
Report: State-Based Marketplaces More Successful Than HealthCare.gov  
Maryland to Rebuild Health Insurance Exchange Website 

 

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