Software giant IBM and its subsidiary Cúram Software have agreed to pay $14.8 million to settle claims it made misleading statements to win the contract to develop the Maryland’s Health Insurance Exchange (HIX) website and IT platform, according to a statement from the U.S. Department of Justice.
IBM closed its acquisition of Irish software development company Cúram Software in 2011 and submitted a proposal to develop the HIX system on the same day.
With the Rise of AI, What IP Disputes in Healthcare Are Likely to Emerge?
Munck Wilson Mandala Partner Greg Howison shared his perspective on some of the legal ramifications around AI, IP, connected devices and the data they generate, in response to emailed questions.
The DOJ claims that as part of the vetting process for that contract, Cúram showed Maryland state officials that its software could determine eligibility for health assistance coverage, calculate applicable tax credits, address changes in life events and integrate with another subcontractor’s health plan shopping software.
During the presentation and the subsequent development process Cúram allegedly misrepresented its progress on the software, its ability to meet technical requirements like calculating tax credits and addressing changes in life events, and the capability to integrate with other software necessary for a functioning HIX system.
Maryland eventually terminated the contract with Cúram after a number of a problems with the HIX website and IT platform and replaced the system with another vendor.
“Companies are expected to be candid about products, skills and abilities during contract negotiations,” Maureen Dixon with the Department of Health and Human Services’ Office of the Inspector General, said in a statement.
A Personalized Approach to Medication Nonadherence
At the Abarca Forward conference earlier this year, George Van Antwerp, managing director at Deloitte, discussed how social determinants of health and a personalized member experience can improve medication adherence and health outcomes.
“We will continue to work with the U.S. Department of Justice to ensure taxpayer dollars are only spent for honest, high-quality health care products and services.”
The problems with Cúram’s software was not limited to Maryland. Issues with the company’s technology also hampered the Minnesota health insurance exchange MNsure leading to duplicate applications, delayed applications and coverage gaps.
In a 2014 letter addressed to IBM CEO Ginni Rometty, then Gov. Mark Dayton wrote that the company’s product “has not delivered promised functionality and has seriously hindered Minnesotans’ abilities to purchase health insurance or apply for public health care programs through MNsure.”
Photo: fstop123, Getty Images
