Dear Neighbors,
This week, the Legislative Auditor released their report on MNsure, detailing the numerous failures and problems that Minnesota’s Obamacare exchange has had since being launched in October 2013.
The biggest findings from the report showed that the $189 million health care exchange failed to live up to expectations, and people were not able to easily sign up for affordable health insurance. Enrollment was also far below projections.
Even before the website was launched, OLA discovered that MNsure staff withheld key information from the MNsure Board and other officials about technical problems. Once the website launched, thousands were left with the headache of trying to navigate through a broken system. For those who called into customer service lines, OLA found that not only were these MNsure employees not properly trained to handle problems, but for the first 11 months, one in three calls were simply abandoned.
For those who signed up for insurance through MNsure, OLA concluded that the enrollment process was lengthy, and many people were not notified if they had completed the process or could get proof of insurance, nor were they informed if they were eligible for tax subsidies or public programs.
And when it comes to public vs. private plan enrollment, public sign ups far outpaced commercial enrollment. According to OLA, MNsure misled Minnesotans claiming they met their enrollment goals, and Democrat projections for commercial enrollment missed the mark by 88 percent. Since taxes on commercial plans are how MNsure funds itself going forward, the funding source for the exchange is not sustainable in the long-term. MNsure has already raised the tax to the maximum 3.5 percent on insurance plans purchased through the exchange, costing Minnesotans even more money to pay for their family’s health care coverage. Governor Dayton has asked the legislature for more funding to cover MNsure’s budget shortfall.
Finally, OLA pointed out something that many critics of MNsure have been pointing out for years—the exchange insured very few new people. Of the few that did sign up for private plans through MNsure, 72 percent previously had insurance. The auditor notes that because of this, MNsure’s claims to have lowered the uninsured rate in Minnesota are unproven at best.
With another $125,000 in compensation increases given to MNsure executives running a broken exchange last year, it’s clear the legislature and governor must work together to rein in this out of control government program and bring real reform. Hopefully, in the coming months the House will pass several of OLA’s reform recommendations as well as implement some commonsense solutions of our own. Minnesotans deserve a health care exchange that works well and efficiently, and unfortunately right now MNsure is not meeting those expectations.
Insurance Fraud Legislation
Last week, I introduced HF 864, a bill aimed at reducing insurance fraud in Minnesota. This bipartisan initiative will target loopholes in state statute that allows fraudsters to overbill insurance companies by providing more tools for the Commerce Department’s anti-fraud unit, increasing fines and penalties for people committing insurance fraud and implementing a 30-day cooling off period before accident reports can be accessed.
Minnesota ranks fourth in the nation for suspected fraud claims, and the legislature must change the law to deter insurance fraud. Too many people are taking advantage of Minnesota’s “no-fault” system to stage accidents and take advantage of consumers, driving up the cost of auto insurance.
I will keep you updated on the progression of HF 864 this session.
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As always, it is a privilege to represent you in the Minnesota House. Please let me know if I can ever assist you or your family on a matter of state government.
Have a great week,
Tim
**Encourage your neighbors and friends to sign up for my email updates at www.house.mn/37B