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Legislative News and Views - Rep. Joyce Peppin (R)

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Taxpayers Don't Deserve This

Tuesday, February 2, 2016

Dear Neighbors,

Regular readers of my columns know that I work to provide updates on issues facing our state in a fact-based manner while trying to avoid partisanship.  As Majority Leader of the Minnesota House, I know my position requires me to work with the Senate Democratic majority as well as with Democratic Governor Mark Dayton. 

But recent waste and abuse with the MNsure health insurance exchange overseen by the Governor’s Department of Human Services is so rampant that I simply cannot help but be angered by the incompetence of the Dayton administration in overseeing this program. 

Last week, the non-partisan Office of the Legislative Auditor (OLA) released their report on MNsure, revealing massive waste that cost taxpayers hundreds of millions of dollars in a mere five-month period. According to the report, our state doled out anywhere between $115 and $271 million in improper payments to ineligible MNsure public enrollees between January and May of last year. 

That kind of waste is outrageous and unacceptable. Minnesotans, who are already facing skyrocketing health insurance premiums, deserve better. 
When examining this kind of waste, OLA arrived at the data by sampling cases from early 2015 and found errors in 38 percent of those cases for people who enrolled in public programs through the exchange. Of those 38 percent, three-quarters did not qualify for any public program at all. Having an error rate in over one-third of cases demonstrates glaring failures within MNsure, and means that more than 80,000 Minnesotans enrolled in a public program for which they were not eligible.  

The blame for this kind of massive waste comes from software issues, as well as miscommunication and poor training within the Department of Human Services, according to the report. Most frustrating is that many of these issues were identified in a previous audit from 2014, and were either not addressed or have yet to be resolved. In spite of this, the Dayton administration kept enrolling people in MNsure with seeming disregard for their eligibility and/or to boost enrollment numbers to make the program look successful. Either way, that’s just wrong. 

To protect the integrity of our public health care programs, prevent fraud and save taxpayers money, House Republicans introduced legislation last session to improve our state's public program eligibility verification, a move that was estimated to save more than $300 million. Unfortunately, several critics of that legislation including the Dayton Administration and Democrats in the Senate disputed those savings, and refused to include this measure in the final bill. 

I hope this recent OLA report offers the spark needed to those who have been sitting idly by and watching MNsure spiral further out of control. State leaders can no longer ignore MNsure's continuing failures and must act together to ensure that those who qualify for public programs are able to enroll, and those who are not eligible are removed from those programs.

To delve further into the OLA Report, House Republicans have scheduled a Health and Human Services Finance Committee hearing for further investigation, to discuss the report’s findings in more detail and to learn more about the continued problems MNsure is facing. 

We always talk about cutting down on waste and reining in government spending, and MNsure is one area where these things are desperately needed. Expect House Republicans to introduce MNsure reform measures during the upcoming legislative session. The waste and mismanagement must come to an end.  

If you have any questions or concerns about MNsure or any other issue relating to state government, my office is available to help. My direct line is 651-296-7806. My email address is rep.joyce.peppin@house.mn and my mailing address is Room 459 State Office Building, 100 Dr. Martin Luther King Boulevard, St. Paul, MN 55155.

Have a wonderful week,

Joyce


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