Research Briefing

Obamacares Rocky Start in Minnesota: As President Obama Apologizes, Questions Continue about Obamacares Viability in Minnesota
Last week, President Obama issued a stunning apology for his oft-repeated statement if you like your plan you can keep it. This statement had been proven to be false as two million Americans, including some 140,000 here in Minnesota, will lose their current health insurance policies at the end of this year. MNsure Rollout Creates Frustration. At the conclusion of his [Tim Sachis] shopping experience Monday, Sachi learned that his application for a public health insurance program is now being processed, and hes unclear about the next step. Im not sure if I should wait to find out what they will send me, or I should go to one of the health plans, the 56 -year-old Woodbury resident said. The question is just the latest frustration, Sachi said, since it took him about 30 attempts over the past week to finally create an account on the MNsure website. (Christopher Snowbeck, Praise, confusion greet MNsure Consumers have mixed responses to states new health exchange, Pioneer Press, Oct. 8, 2013) Small Businesses Will Find More Options Outside MNsure, Face Rate Increases some insurance experts say that attracting small businesses could be challenging for MNsure[s]even insurance companies are competing for small-business customers in the traditional health insurance market that continues to exist outside of MNsure, ac cording to data from the state Commerce Department. That compares with just three companies competing for small-business accounts on MNsure. So, small businesses will find more options outside the exchange. (Christopher Snowbeck, Some small businesses m ay forgo MNsure to delay rate hike Exchanges rules raise some 2014 premiums, Pioneer Press, Oct. 12, 2013) Murky MNsure Numbers As Only 406 Of 3,700 Enrollees Purchased Private Plans. More than 3,700 people have used the website of MNsure, the state's new health insurance exchange, to take significant steps toward obtaining health insurance coverage for next year, state officials announced Wednesday. The tally includes 406 Minnesotans who are making plans to pay for private health insurance policies they've selected through the state-run marketplace. (Christopher Snowbeck, MNsure enrollment numbers are out but murky, Pioneer Press, Oct. 17, 2013) MNsure Offers No Choice In Rochester. Its very, very disappointing, said Robert Coates, a 61-year-old retired school psychologist who wants to replace a private health insurance thats

being phased out. I was really looking forward to getting some better coverage for less monthly, and it looks like its going to cost me almost twice as much, not to mention the lack of choices. Since the site opened Oct. 1, local consumers have been stunned at the lack of choice, even as the Jan. 1 deadline for getting health insurance under the Affordable Care Act is approaching rapidly. (Mike Klein, MNsure offers no choice in Rochester, Rochester Post-Bulletin, Oct. 19, 2013) Analysis Highlights Concerns Over Low Numbers of People Buying Private Health Insurance In Exchanges. [I]f that trend continues, theres concern there wont be enough healthy people buying health insurance for the system to workGail Wilensky, a former Medicaid director said either the private insurance enrollments come up somewhere around the expected amount or theres going to be a problemYou need a volume and you need a mix of people that are healthy as well as high users in private insurance, in order to have it be sustainable. Industry sources say if we do not see some real turnaround soon, there could be big problems for the entire system. (Jan Crawford, Medicaid enrollment spike a threat to Obamacare structure? CBS News, Oct. 25, 2013) 140,000 Will Lose Current Policies. At least 140,000 Minnesotans who buy health insurance on their own are being notified that their plans will no longer be available under the new federal health care law, adding to the national furor over canceled policies that has overtaken the health care debateindustry officials say higher premiums and added benefits are likely in store for most of those who now buy high deductible/limited coverage plans on the individual market. (Kevin Diaz, In state, 140,000 will lose current policies, Star Tribune, Oct. 31, 2013) One Month In, Just 16 Percent Choose Private Insurance on MNsure. Last week, the Dayton Administration released updated metrics for MNsure. In nearly five weeks, only 10,940 Minnesotans have enrollments in process. Of this number, only 16 percent have opted for private insurance. (Jackie Crosby, 10,940 have enrolled on states health exchange since launch Oct. 1 Star Tribune, Nov. 7, 2013) Legislative Auditors Report: MNsure Officials Made Decisions That Contributed Di rectly to the Disclosure of Private Data. The report said that MNsure made a series of critical decisions that made personal information connected to 1,500 Minnesota insurance brokers vulnerable to a breach. Fast-moving timelines, not enough workers and inadequate data security are all to blamethe Legislative Auditor also questioned why MNsure was collecting broker Social Security numbers in the first place a piece of information that was not necessary to certify insurance agentsthe Legilslative Auditor also questioned why MNsure was using unsecured email to gather personal information from brokers. (Catharine Richert, Probe: MNsure date breach was unintentional, Minnesota Public Radio, Nov. 7, 2013 )

Even Before Its Launch on October 1, MNsure Was Hampered By Embarrassing Mistakes and Missteps
MNsure Asks the State to Keep Its Marketing Plan Secret. The new state-run health insurance exchange wants to guard details of its marketing plan as closely as a firm on Madison AvenueJane Kirtley, a professor at the University of Minnesotas journalism school, said that the action was unjustified and that they fear such an overly broad request could extend beyond the MNsure launch. That strikes me as a totally bogus concern that people could use it to spread misinformation, said Kirtley, who teaches media ethics and law. Thats the oldest dodge in the book to try to avoid complying with open records laws. (Jackie Crosby, Exchange keeps

marketing plans quiet Mnsure officials say they fear the information could be misused by nonaffiliated groups. Star Tribune, July 25, 2013) Local Official Calls MNsure Marketing Campaign Offensive and Inappropriate. I think theyre offensive, some of them, and I think theyre inappropriate, Mayor Rita Albrecht told The Bemidji Pioneer Monday of some of the images included in the marketing campaigns unveiling. And I would prefer some of them not be used. (Scott Theisen, Paul, Babe Ads Rankle Bemidji Leaders, KSTP, Aug. 19, 2013) MNsure Marketing Campaign Costs Whopping $9 Million. Minnesota is spending $3.5 million on advertising as part of that [MNsure] campaign, including $1.1 million for television ads, $800,000 for digital ads, $700,000 for newspaper and magazine ads, and $400,000 for billboards, bus ads, and other out-of-home marketing. (Stephen Tellier, $9 Million MNsure Campaign Kicks Off, KSTP, Aug. 19, 2013) MNsure Criticized For Colossal Mistake Regarding Lack Of Outreach C ontracts To African American Community Groups. Leaders of MNsure, Minnesotas new health insurance exchange, faced tough questions Tuesday about why African American community groups were not chosen to receive grants in a key outreach effort. You blew it, [Senator Jeff] Hayden said in comments directed at MNsure leaders. You just flat-out didnt get it right.(Christopher Snowbeck, MNsure criticized for lack of outreach contracts to black groups, Pioneer Press, Sept. 10, 2013) MNsure Data Breach Raises Concerns About Data Security. A MNsure employee accidentally sent an e-mail file to an Apply Valley insurance brokers office on Thursday that contained Social Security numbers, names, business addresses and other identifying information on more than 2,400 insurance agents. The broker, Jim Koester, said The more I thought about it, the more troubled I was. What if this had fallen into the wrong hands? Its scary. If this is happening now, how can clients of MNsure be confident their data is safe? (Jackie Crosby, Errant e-mail creates security breach at MNsure, Star Tribune, Sept. 13, 2013) Star Tribune Editorial Board Says Mishaps Put Unflattering National Spotlight on MNsure. [T]he latest mishaps came at the hands of their new MNsure colleagues, who have made two disappointing mistakes recently that sapped confidence in this important marketplace in the critical lead-up to its Oct. 1 launchGov. Mark Daytons glib assurance that glitches happen didnt suffice. (Editorial, Self-inflicted injuries at MNsure Data breach demands scrutiny, improvements, Star Tribune, Sept. 19, 2013) MNsure Struggles To Recover From A Series Of Embarrassing Blunders And Mistakes. Botched grants, an unnerving data security breach involving more than 1,000 Social Security numbers, and ridicule from some quarters over a multimillion dollar advertising campaign have left officials for MNsure scrambling to restore confidence less than two weeks before a closely watched launch of the only state-run health exchange in the Midwest. (Jackie Crosby, MNsure set to start despite flubs After some high-profile gaffes with a data breach and marketing plan, the new state-run health exchange vows to be ready on Oct. 1. Star Tribune, Sept. 22, 2013)