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MD settles with computer contractor over Medicaid failures

MD settles with computer contractor over Medicaid failures

BALTIMORE (WBFF) - The state of Maryland has reached an $81 million settlement with a computer company that failed to build a new computer system for the state's Medicaid program.

The state had awarded a major IT (information technology) contract to Computer Sciences Corporation to the Maryland Department of Health, according to a news release from state Attorney General Brian E. Frosh.

The contract, called the Medicaid Enterprise Restructuring Project, required the company to develop, implement and maintain a new computer system to administer the state Medicaid program, according to the news release.

The project was set to replace a computer system dating to 1992, which the state's health department continues to use today.

The state first awarded the contract, which ultimately cost $170 million, in 2012; "within a year the project was far behind schedule and CSC refused to perform contractually required work necessary to meet the requirements of the Affordable Care Act, according to legal documents filed by the State," reported Frosh's office in the news release.

The contract was suspended in 2014 after the state paid CSC about $27 million for partial work performed. The contract was completely terminated in 2015.

"This settlement compensates the State for the damages it suffered from the failure of CSC to live up to its obligations under its contract with MDH," said Frosh in the statement.


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