Dear Friends and Neighbors,
This week, the nonpartisan Office of the Legislative Auditor released their report on MNsure and the findings, though not surprising, were still very troubling. In summary, after taxpayers spent $189 million to build the Obamacare exchange in Minnesota, the auditor found that MNsure’s failures far outweighed its accomplishments during its first year of operations.
One of only thirteen states to enroll individuals through a state-based exchange (all others opted to use the federal exchange), the Office of the Legislative Auditor concluded that MNsure failed to perform its basic function of helping people easily sign up for affordable health insurance for themselves and their families.
Key findings of the audit include:
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MNsure implemented its enrollment website in 2013 with serious technical problems. It did not adequately test the site, and it made insufficient use of state government technology experts.
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Federal law imposed an ambitious timeline on states developing exchanges. This challenge was heightened by late federal rules, delays in passing state legislation, and problems with vendor selection and performance.
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MNsure staff withheld information from the MNsure Board and other key officials before the enrollment website was launched.
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MNsure reported that it met its overall enrollment target in its first open enrollment period, but the target was seriously flawed. The target contained an error that resulted in an unrealistically low estimate.
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Many people who bought insurance through MNsure have been satisfied with the products they purchased. But the initial enrollment process was often lengthy, and technical problems frustrated consumers, insurers, and counties.
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About 28 percent of MNsure enrollees said they were uninsured immediately before enrolling.
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During its first year, MNsure failed to provide adequate customer service through its call center. Also, the roles played by consumer assisters were not sufficiently clear, so consumers were often referred back and forth among them.
As mentioned, MNsure’s overall enrollment target was seriously flawed. MNsure reported 371,000 health insurance enrollments during its first year. However, just 56,000 (15 percent) of these were in commercial (privately paid) insurance, and the remainder came from existing public health programs which, by law, were required to use MNsure to access health care . The fact that only 15 percent came from the private enrollment is extremely problematic because the tax on commercial (private) insurance plans is how MNsure is supposed to pay for itself going forward. The fact that it is so far below its enrollment goal means there is a serious funding gap to run the exchange. Governor Dayton has asked the legislature for additional money for MNsure this year, hoping to fill the gap in funding which will mean less money for school funding and other priorities.
Because of this financial instability, taxpayers are paying the price. The tax on private plans purchased through MNsure is at the maximum 3.5 percent even though lawmakers promised when building the exchange the tax wouldn’t go above 2.25 percent. Families are already burdened with paying for health care costs that have skyrocketed after the implementation of Obamacare, and this exacerbates the problem further.
Minnesotans deserve a working exchange. House Republicans have introduced legislation this session to make improvements to MNsure, ensuring fair access to affordable health care and increasing accountability within the agency. In the coming months, I am hopeful that Governor Dayton and the legislature can come to bipartisan agreement to tackle the mounting problems at MNsure and make real, meaningful changes to our exchange.
If you would like to read the full audit, click here.
If you have any comments about MNsure, I welcome you to contact my office. I am here to serve you!
Many thanks go out to you for the honor of representing Chisago County in the Minnesota House. It’s a privilege to be your state representative.
Sincerely,
Bob