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Maryland misallocated $28.4 million in federal money for its flawed health care exchange and should pay the money back, according to a federal audit released Friday. The audit marked the first time the inspector general of the Department of Health and Human Services recommended that a state repay misallocated federal grant funds involving a health care exchange. (Witte, 3/28)

A federal audit of Maryland’s once-troubled health-insurance exchange found that the state waited too long to formally update its enrollment projections and numbers with federal grant providers, resulting in the misallocation of $28.4 million. The inspector general for the U.S. Department of Health and Human Services recommended Friday that Maryland repay that money and properly apply for reimbursement, which could be 50 to 90 percent of the original amount. (Johnson, 3/28)