IBM to pay $14.8M to settle false claims allegations: 5 things to know

Mackenzie Garrity -

IBM and Cúram Software have agreed to pay $14.8 million to settle allegations that the companies made misrepresentations to Maryland officials as the state was awarding a contract to for its Health Insurance Exchange website and information technology platform.

Five things to know:

1. In December 2011, IBM acquired Cúram and submitted a proposal to the state of Maryland to support its HIX. The draft included Cúram as a subcontractor for software and services.

2. As part of the bidding processes, Cúram participated in a presentation to Maryland to display its software on Jan. 5, 2012. During the presentation, Cúram said its software could determine health assistance coverage, calculate applicable tax credits, address changes in life events and integrate with other subcontractor's health plan shopping software.

3. Maryland awarded the contract to IBM and Cúram on Feb. 22, 2012. Federal grants from HHS partially funded the HIX.

4. The website was launched in October 2013 and repeated problems followed. According to the lawsuit, Cúram-IBM misrepresented the status of its software, including its ability to address life events and calculate tax credits. Maryland also claims Cúram's software was unable to integrate with other providers.

5. The Department of Justice announced the settlement on June 14. The settlement is not an admission of liability by IBM.

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