MNsure Auditor Report Findings

Dear Friends,

The non-partisan Office of the Legislative Auditor released today a new report on MNsure, the troubled health insurance exchange.

The report found MNsure has lacked oversight and accountability with respect to marketing costs and collection of receipts, and noted MNsure has not complied with board policies or state statues. In addition, the report found the Department of Commerce and Department of Management and Budget both had internal control weaknesses and were non-compliant with federal and state requirements.

There were three especially glaring oversight failures found in the report:

· The original $666,590 marketing contract increased to nearly $1 million after the director expanded the scope of his work without authorization from MNsure management. It was only after the contract expired that MNsure’s CFO retroactively authorized $1.5 million for services already performed.

· MNsure and the Department of Commerce spent nearly $40 million on equipment, advertisements, and software and technology licenses, but the report found that purchases did not have documented authorization from appropriate personnel and money was not set aside for those purchases as required by law.

· MNsure awarded $4.7 million in grants to 41 recipients last fall, but has not performed site visits or reviewed the financial activity of those receiving grants.

I would encourage you to read the full report to get a sense of MNsure’s flaws. The full report can be found here.

Please don’t hesitate to contact me if you have any questions about MNsure or other legislative issues.


Bill Ingebrigtsen
District 8



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