Minnesota Gov. Mark Dayton signed the state's health insurance exchange into law Wednesday after a legislative committee reconciled regulatory differences between a set of bills passed last week.
In a media release, Dayton's office said the "consumer-focused marketplace will require insurance companies to compete" and "will empower middle-class families, small businesses, and low-income Minnesotans to choose the quality health coverage they need at a price they can afford."
Rebranded as MNsure, the exchange will operate as a government entity, overseen by a seven-member board (six appointed by the governor, plus the Health Department secretary) and funded by a premium fee of up to 3.5 percent. Funding for MNsure, with annual operating costs estimated at $60 million, was one bone of contention between the House and Senate, the latter initially voting to fund the exchange via the state's tobacco tax fund.
Another disagreement between the House and Senate was the extent to which the exchange should negotiate prices with insurers or select certain health plans on behalf of consumers. The Senate bill had given MNsure so-called active purchaser authority, while the House bill guaranteed health plans a slot in several categories if they met all other conditions.
The law signed by Dayton, a Democrat, allows any qualified insurer to sell on the exchange during its first year; in 2015, the MNsure board may be able to select health plans, based on affordability, value and other metrics.
The law does keep some of the Senate bill's provisions on board member eligibility, barring people with financial ties to insurers or providers.
The Governor's nominations for the board are due in April. Health plan applications to sell on the exchange are due May 17.
MNsure has estimated it will serve 1.3 million Minnesotans -- 20 percent of the state -- of whom about 300,000 are currently uninsured. The exchange so far has tapped about $110 million in federal grants for planning and IT. The exchange is being led by executive director April Todd-Malmlov, who previously worked as the Minnesota state health economist and as director of competitive intelligence and a government affairs VP at UnitedHealth Group.