The department responsible for establishing Minnesota's state-run insurance exchange, MNsure, improperly spent $1.2 million in federal grants, according to a recent federal audit.
HHS' Office of the Inspector General examined how MNsure used part of the $86.4 million federal grant issued to establish Minnesota's insurance marketplace between 2013 and 2014.
The audit found MNsure used out-of-date data to determine how to allocate $1.8 million in federal grant money between MNsure and public health programs during that time.
Specifically, OIG claims MNsure misallocated $346,000 that should have funded public health programs. It also found MNsure improperly spent $930,000 in marketing expenses under the supervision of an unauthorized individual.
OIG recommended CMS seek the $1.2 million refund in full.
MNsure officials disputed most of OIG's findings.
"When viewed in the proper context and in light of remedial steps taken by MNsure, it is clear that requesting a refund of the amount involved would not only harm MNsure, but would be an extreme measure," a MNsure spokesperson said in a statement, according to Saint Paul Pioneer Press.