IT oversight changes key to MNsure fixes, committee hears

Information technology glitches were core among the early failings of MNsure, the state's burgeoning health insurance market, according to a withering assessment from the legislative auditor released last month.

That was due, in part, because of nearly a dozen exceptions lawmakers granted to MNsure from oversight by the offices of MN.IT services, the state's IT agency, the months-long review found. A bill approved Tuesday by the House Government Operations and Elections Policy Committee would roll back those exemptions and bring the insurance exchange — already working more closely with MN.IT, MNsure officials and the legislative auditor told the committee — more in line with other state agencies.

Rep. Phyllis Kahn

[MORE: Read Session Daily’s coverage of the OLA’s MNsure report]

Sponsored by Rep. Phyllis Kahn (DFL-Mpls), HF18 proposes to remove 11 exceptions in state law that exempt MNsure from the same types of IT oversight to which other executive state agencies are subject. Those exemptions, officials from the Office of the Legislative Auditor said, helped muddy the process of managing the massive, complex technological undertaking of launching a health insurance exchange from scratch and directly contributed to myriad problems that have plagued MNsure.

“Why would we take the most complicated technical thing we’ve ever done away from the people who are experts?” Kahn said. “That’s the question that needed to be asked.”

The committee re-referred the legislation to the House State Government Finance Committee. A companion, SF1018, sponsored by Sen. Terri Bonoff (DFL-Minnetonka) awaits action by the Senate Health, Human Services and Housing Committee.

Signed into law in March 2013, MNsure’s website launched in October of that year plagued by a cavalcade of criticism due to crippling technical issues that impacted consumers, insurers, counties and the Department of Human Services.

Working under a compressed timeline to have the state’s exchange up-and-running, MNsure left critical MN.IT expertise on the sideline, said Joel Alter, a program evaluation coordinator for the legislative auditor’s office, as officials worked with private vendors to build the system.

The auditor’s report recommended MNsure be subject to formal oversight by MN.IT, instead of the informal governance structure developed by officials over the past year as they sought to cure the exchange’s technical ills.

"It makes sense to have MN.IT statutorily be a part in that process," Alter said.

Kahn voiced optimism her bill — which received bipartisan praise during Tuesday’s hearing — would gain wide support from lawmakers.

“This is the one piece of MNsure legislation I think you can pass unanimously,” she said.