The state on Wednesday announced it's receiving more money to continue work on a health insurance exchange, which is meant to help consumers compare and buy health insurance plans.
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Several companies have put their prototypes online for the public to test. The health insurance exchange is a cornerstone of the federal health reform law and is meant to give people looking to enroll an easy way to compare and purchase plans.
IBM software will be used to determine Minnesotan's eligibility for the various programs to be offered through the online insurance platform, the Star Tribune reports. Virginia-based government services firm Maximus was awarded a $41 million contract last week to take the lead on building the new marketplace -- a component of the federal health care law.
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"There is no clear purpose for what these people are doing," the Republican senator says about nine staffers who, in total, are receiving more than $787,000 in salary for their work on the state's health insurance exchange system.
The Minnesota Department of Commerce has selected a Virginia-based government services firm to develop the state's health insurance marketplace required by the federal health care overhaul, the Pioneer Press reports. Individuals and small businesses will be able to compare and purchase coverage online beginning late next year.
Nationwide, insurance companies are paying out $1 billion to consumers this month, including $8.9 million from five Minnesota insurance companies. Bloomington-based HealthPartners will provide the most at $6.8 million. The rebates are required by the federal Affordable Care Act, which set a limit on the share of premium revenue that health insurers could dedicate to administration, marketing and profit.
State officials are working on setting up a public health insurance exchange for Minnesota. Meanwhile, a private version of the same concept is catching on quickly with businesses looking to cut insurance costs.
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