Understanding MNsure

Dear Neighbors,

Many Minnesotans are confused and upset over recent news stories about MNsure—Minnesota’s extension of Obamacare.

Reports continue to circulate about an error-plagued system that is undergoing a top-to-bottom legislative audit while executives receive $26,000 in bonuses. An independent consultant has recommended scrapping the whole system and starting fresh after $160 million has been spent and 280,000 Minnesotans have been forced off their health plans.

So what’s really going on here?

To help folks better understand what’s going on at MNsure, let’s start from the beginning.

BACKGROUND

What is MNsure?

In 2013, Gov. Mark Dayton and the Democratic-led Legislature enacted the Minnesota arm of Obamacare, now called MNsure. It is a new government agency tasked with building and operating an online health insurance marketplace to provide consumers with “apples-to-apples” comparisons on health plans.

Are people signing up for health insurance on MNsure?

MNsure is running below its lowest low projections. As of mid-January, MNsure confirmed that fewer than 20,000 households had paid for private insurance purchased through their website. Over 50,000 had enrolled in public programs (Medical Assistance and MinnesotaCare).

How much does MNsure cost taxpayers?

Over $160 million has been spent on technology and start-up costs for the new agency. This includes over 80 employees (16 earn over $100,000), $9 million on Paul Bunyan commercials and advertising, and $26,000 in performance-based bonuses to executives. Total costs will reach at least a third of a billion dollars by 2016, without one dollar going toward actual health care.

How has MNsure been operating?

Buying health insurance on MNsure should be a fairly easy, seamless, electronic transaction similar to what consumers engage in every day when purchasing from countless online retailers or service providers, but unfortunately, this is not happening.

Since its roll-out on Oct. 1, consumers have experienced:

·       ongoing website crashes

·       hour-long wait times

·       confusing processes

·       inability to submit payments

·       incomplete information transactions between MNsure and carriers

·       vulnerability to WiFi attacks

·       social security number breaches

Additionally, the executive director appointed by Gov. Dayton stepped down after taking a Costa Rica vacation during the troubles, and the non-partisan state legislative auditor is doing a top-to-bottom audit. An independent report slammed “non-existent” leaders, saying the state should consider scrapping the program and starting over.

As a result of Obamacare mandates, 280,000 Minnesotans were forced off their insurance plan, and had to search for new coverage and, possibly, new doctors and clinics.

Why aren’t legislators doing anything to fix the problems?

MNsure is run by a board of directors appointed by Gov. Dayton. The Governor and DFL leaders gave the board total autonomy and freedom from normal oversight, transparency and accountability measures that govern all other state agencies and provide taxpayers with some assurance that their money will be spent wisely.

Some of the problems may be irreparable, and others would require legislative action to fix. It would seem that as long as Democrats have total control of state government, MNsure will not be changed in any substantive way. In fact, it may be untouchable.

What are Republicans doing about the problems?

During legislative debate on MNsure, Republicans offered literally hundreds of amendments that would have made MNsure transparent and affordable; our amendments would have helped curb the problems folks are experiencing now. Those attempts were defeated.

ABOUT YOUR INSURANCE

Will my health insurance costs go up?

For many individuals and families, insurance through MNsure is more expensive, or the plans with affordable premiums do not offer what they need or have deductibles and high out-of-pocket costs. For some, it is less expensive.

Why? MNsure charges a 1.5% tax on every individual, family and small business plan to pay for the extra layer of government costs between consumers and their health insurance plans. This premium tax could increase to 3.5% in later years if enough young, healthy individuals do not sign up.

But what about MNsure having the “lowest rates in the nation”?

You cannot buy insurance from other states, so the only rate comparison that makes a difference is whether or not you are paying more or less than prior to Obamacare.

Will my personal information be kept private?

Due to insufficient and questionable data policies put in place by MNsure executives, MNsure remains vulnerable and current law is inadequate to protect from improper use.

Will I be able to keep my doctor?

A report estimates 280,000 Minnesotans were forced to give up their plans and doctors/clinics due to Obamacare.

President Obama’s claim, “If you like your plan, you can keep it,” was called the 2013 Lie of the Year by PolitiFact.

At this point, it is unclear what the future holds for Obamacare and MNsure. However, if you are having problems with MNsure, please do not hesitate to contact my office.

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As always, I welcome your continued comments and questions. I am here to serve the people and priorities of Rogers, Dayton, and Maple Grove.

Have a great weekend!

Joyce

**Encourage your neighbors and friends to sign up for my email updates at www.house.mn/34A