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Report: health exchange glitch could cost $30.5M

Thursday - 2/27/2014, 10:53pm  ET

BRIAN WITTE
Associated Press

ANNAPOLIS, Md. (AP) -- A state report says a mistake with Maryland's defective health care exchange could cost the state $30.5 million.

The report made public Thursday by the Maryland Department of Legislative Services says the problem relates to Medicaid enrollees in the exchange. The report says the system is currently incapable of handling determinations of whether people remain eligible for Medicaid.

The report is citing "a variety of system architectural flaws" with software in the health exchange. In effect, the state can't determine who is no longer eligible for Medicaid, so the state has agreed with the federal government to a six-month delay in determining eligibility.

The Department of Legislative Services has estimated the delay will cost the state $17.8 million in fiscal year 2014 and $12.7 million in fiscal year 2015.


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