Mass. To Pay Health Connector Vendor $35 Million To Close Out Contract

By Steve LeBlanc, Associated Press

BOSTON (AP) – Massachusetts will pay the lead contractor on the state’s hobbled health insurance website an additional $35 million to close out the contract.

That means the CGI Group, which has already been paid $17.3 million, will end up receiving about $52 million of the original $89 million contract.

Health care officials said the $35 million will compensate CGI Group and subcontractors for meeting certain milestones since November, when they were last paid.

The agreement signed Friday with CGI also allows the attorney general to recover up to $12 million, based on the results of an ongoing false claims investigation.

Massachusetts announced in March that it was dropping CGI after the state’s updated health care website ran into serious troubles.

Health care officials said CGI will continue to provide “critical transition services” over the next several months.

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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