From the office of Congressman Andy Harris:
Congressman Andy Harris (MD-01) commended the Department of Health and Human Services Office of Inspector General for releasing their report on the failed Maryland Health Exchange and uncovering that the state of Maryland intentionally misled the federal government in allocating funds to the exchange. Congressman Harris, along with then Congressman Jack Kingston (GA-01), requested this audit of the Maryland Health Exchange after the disastrous rollout. The audit found that the state had misled the federal government and misallocated $28.4 million in taxpayer dollars to the failed health exchange. The Inspector General is recommending to the Centers for Medicare and Medicaid Services (CMS) that Maryland be forced to repay the money in total.
“We knew the launch of the website was a disaster, but now we know the O’Malley Administration misallocated federal funds. This audit was critically important, and I believe the state will have to return the appropriate amount of money to the federal government. This is just another example of Governor Hogan having to clean up Governor O’Malley’s mistakes,” said Congressman Harris.
It is possible the state may be able to lower the number from $28.4m because the money could be recouped from Medicaid. This audit did not look at other items related to the exchange but focused solely on whether the state followed federal guidelines. The audit looked at failures of the state as a whole, and does not assign specific blame to individuals.