MNsure audit prompts call for better insurance checks

Feb. 03--House Republicans are calling for better eligibility checks following an audit that projected up to $271 million in overpayments last year for people who didn't qualify for their public health insurance coverage.

The report from Legislative Auditor James Nobles looked at thousands of Minnesotans who enrolled in public coverage through the state's MNsure system, which the Department of Human Services uses for enrollment and eligibility in the health insurance programs.

The audit is being presented Wednesday during a House committee hearing near the Capitol.

During a news conference before the hearing, Rep. Matt Dean, R-Dellwood, said the report showed problems that Republicans sought to address during last year's legislative session.

"Hundreds of millions of dollars are potentially being wasted," Dean said. "It is a big deal."

But in a responding news conference, Rep. Tina Liebling, DFL-Rochester, said lawmakers last year passed legislation to improve checks in the public programs, and should wait to see the impact from those changes. Liebling also questioned the methodology of the auditor's report.

"The report is unhelpful in terms of making changes that carry us forward," she said during the news conference.

The audit looked at a sample of cases from early 2015 and found errors in 38 percent of those who enrolled through the state's MNsure system in either the Medical Assistance or MinnesotaCare programs.

Auditors applied the error rate to a larger group that enrolled through MNsure to project the potential cost over a five month period.

The report was a follow-up to a November 2014 audit from Nobles that found similar problems related to MNsure. The new report was unique in putting a price tag on the problems. It also found many issues from the first report hadn't been resolved.

Twitter: @chrissnowbeck

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