Republicans call for MNsure review

On the heels of a series of potentially troubling news stories about MNsure, a pair of Republican legislators are calling on Gov. Mark Dayton to authorize an investigation of the state health insurance exchange. In a jointly signed letter, Reps. Greg Davids, R-Preston, and Peggy Scott, R-Andover, made reference to concerns about data privacy, long-term funding and the recent awarding of $4 million worth of grants as problematic issues that the state should review immediately.

The trio of perceived shortcomings within MNsure cropped up in rapid succession, with each matter coming to light in a matter of days last week. The letter from Davids and Scott lays out the controversies in chronological order, citing first the exchange’s awarding of $4 million to 30 different community and health organizations. Some critics argued the grant awards failed to include adequate representation for groups connected to the state’s black population.

In response, the MNsure board of directors approved another round of grants worth up to $750,000 at a Wednesday meeting last week, with the new funds intended to correct the alleged lack of inclusion in the first awards.

“The controversy surrounding the grant process and MNsure’s hasty ‘solution’ undermines its credibility as a steward of taxpayer dollars,” write Davids and Scott.

Also surfacing last week were reports that a MNsure employee had mistakenly sent an email containing private information of 2,400 insurance brokers, as well as speculation that the state could look to health maintenance organizations (HMOs) as a future funding source for the exchange. The latter story came from former Minnesota Hospital Association attorney David Feinwachs, who told KSTP that Sen. Tony Lourey, DFL-Kerrick, floated the idea during a closed-door meeting with representatives from the Greater Minnesota Health Care Coalition.

Under the bill passed through the Legislature in March, the exchange is set to cover its operating costs with an estimated $60 million per year generated by a tax on insurance premiums of up to 3.5 percent. Asked about his private statement, Lourey acknowledged he had mentioned the possibility, but said he does not anticipate forcing HMOs to tap their significant holding of reserves to pay for the exchange.

The leak of private information, meanwhile, had already drawn the attention of Sens. Sean Nienow (R-Cambridge) and Michelle Benson (Ham Lake), who said the error should be addressed in a meeting of the MNsure Legislative Oversight Committee. That request was honored in short order by committee co-chairs Lourey and Rep. Joe Atkins, DFL-Inver Grove Heights, who scheduled a September 24 hearing to address the matter.

Davids and Scott write that the recent developments are particularly alarming because the exchange was specifically exempted from 21 rules that typically govern state agencies, granting it what they call “unprecedented latitude to set its own policies.” The GOP lawmakers then argue that Dayton should order a full investigation into the exchange’s operation before the open enrollment period begins on Oct. 1. The audit, they write, could be compared to the recent “due diligence” report on the Minnesota Vikings and owners Mark and Zygi Wilf, as ordered by Dayton and the Minnesota Sports Facilities Authority.

“Surely,” write Davids and Scott, “if the Vikings’ issues merited further scrutiny, it is wise to immediately review how MNsure is spending hardworking taxpayer dollars, how it is securing personal information and how it will be able to operate without continuous taxpayer-funded bailouts.”

Dayton has not issued a direct response to the letter, but was asked about the data leak during a Wednesday press conference. At the time, Dayton called the errant email an “honest mistake,” and said much of the criticism of MNsure stemmed from political opposition to the state participating with the Affordable Care Act, aka Obamacare.