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The Center for Consumer Information & Insurance Oversight


Minnesota Health Insurance Marketplace Grants Awards List

Minnesota has received multiple grant awards to build its Health Insurance Marketplace. This includes a Planning Grant, four Level One Establishment Grants, and a Level Two Establishment Grant.

Summaries of Minnesota’s applications for each grant are provided below:

Establishment Grant Level Two Application Summary

Administrator: MNsure
Award Amount: $41,851,458
Award Date: October 23, 2013
Application Due Date: August 15, 2013

Level of Funding: Level Two

Summary: Minnesota’s Level Two Establishment Grant will build on the work completed under their previous planning and Level One grant to support the implementation of “MNsure,” Minnesota’s State-based Marketplace.  The Level Two grant will fund staffing across Marketplace functional areas for Marketplace establishment activities, including the Board of Directors and Board Advisory Committees, call center, communications, marketing, plan management, and SHOP and ensure the privacy and security of information and related systems.  The Level Two grant will also fund technology related costs including costs for testing and improvements to the MNsure modules and supporting software, security training, and system enhancements.  Minnesota will use award funds to evaluate an alternative risk adjustment model, and will evaluate its future quality rating system and enrollee satisfaction survey systems.  The Level Two award will also be used to assure appropriate oversight, monitoring, and reporting as required by the federal grant to assure that grant funds are expended appropriately.

Establishment Grant Level One Application Summary

Administrator: MNsure
Award Amount: $4,168,071; $26,148,929; $42,525,892; $39,326,115
Award Date: August 12, 2011; February 22, 2012; September 27, 2012; January 17, 2013
Application Due Date: June 30, 2011; December 30, 2011; August 15, 2012; November 15, 2012
Level of Funding: Level One

Summary: Minnesota will use its resources under the Affordable Care Act to build on the Limited-Competition Exchange Planning grant it received in February 2011. Minnesota will focus on developing its Exchange information technology infrastructure. Minnesota also will establish an initial governance structure within the Minnesota Department of Commerce with full-time staff dedicated to the development of Minnesota’s Exchange. The state will also create and maintain an Advisory Task Force to provide guidance on the establishment of an Exchange. The state is requesting funding to develop and execute work plans, timelines, and budget and cost-allocation estimates through 2014. Minnesota will also designate a Chief Financial Officer to create and execute detailed work plans related to financial management, program integrity, and Exchange financing mechanisms.

Minnesota has received a second Level One Establishment Grant to support the design and development of its state Exchange. Minnesota has made substantial progress in the four months since receiving its first Level One Establishment Grant in August 2011. Minnesota will build on the work completed under the previous Planning and Level One grants, including designing and developing the Exchange IT system; consulting stakeholders and providing guidance from the Exchange Advisory Task Force; reviewing and analyzing business operations, program integration and financial management.

Minnesota is receiving its third Level One award to support 1) new contracts to assist in the development of brokers/navigators and consumer services programs for the Exchange, 2) contracts related to consumer testing of cost and quality measures, a quality rating system development and the development of an evaluation framework , 3) continued work related financial management and consulting for financial system development, third party assessment internal controls and consultation contracts for program integrity, evaluation and reporting, and 5) the development of annual maintenance costs, integration of professional services, Independent Verification and Validation (IV&V), IT security assessment and hardware and software requirements.

Minnesota will use its fourth Level One Establishment Grant to support the technical infrastructure of the state’s IT solution, and for maintenance costs for hardware and software and project management, program development, system and network administration, security and database administration, identity management and web and storage administration.

Minnesota will continue stakeholder consultation efforts and engage in system user testing, eligibility assistance and outreach, appeals, consumer assistance training on cost/quality metrics and consumer information, customer service operations, graphic design, and outreach campaigns.  Funding will also support financial management and consulting for financial system development and premium billing and collections.


State Planning Grant

Awarded September 30, 2010

Administrator: Minnesota Department of Commerce

Amount Awarded: $1,000,000

  • Analyze the requirements, options, and impact of an Exchange, engage stakeholders, analyze program integration, and estimate the upfront and ongoing costs of an Exchange.
  • Determine the local market impact of the Affordable Care Act (ACA) and assess the impact of options such as the definition of the small group market, merging of the small group and individual markets, allowing wellness and prevention discounts, methods for risk adjustment, and a Basic Health Plan.
  • Engage diverse stakeholder groups to solicit input on Exchange requirements and options. This will include a plan for ongoing stakeholder involvement.
  • Evaluate and identify viable business models for integration of existing state programs into the Exchange in order to achieve greater value for consumers. Program integration analysis will focus on streamlining and aligning eligibility for public programs, assessing regulatory simplification, and using cost, quality, and satisfaction information to incent value and competition.
  • Build on other states’ Exchange prototypes and standards and for a “proof of concept” request for proposals (RFP) for the development of technical infrastructure options and cost estimates for an Exchange.
  • Examine regulatory and legislative issues related to the establishment of an Exchange.

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