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Review expected of state’s struggling health care exchange

BALTIMORE, MD—There will be a review of Maryland’s struggling state health care insurance exchange website, but it won’t be the formal investigation some legislators hoped for—and it won’t be finished until well after the General Assembly session.
Senate Finance Chairman Thomas M. “Mac” Middleton, D-Charles, said Friday that the troubles surrounding the state health insurance exchange may be part of a two-stage audit performed by the Office of Legislative Audits.
“That was going to happen anyway,” Middleton said of the review. “I think the juiciest information is already out there. I don’t think anybody can point to anything that is criminal, where there’s been any impropriety. You can argue about whether there’s been good management or you can say look into the fact that the primary contractor fired the subcontractor but I don’t see anything that warrants a full-scale investigation.
“There have to be some questions asked,” Middleton said. “There has to be some kind of inquiry. Anytime you have something like this you want to learn from it.”
Middleton’s comments were part of an interview given a day after Gov. Martin J. O’Malley signed into law a bill that provides insurance to people who were unable to register through the MarylandHealthConnections.gov website. O’Malley and others expect that “a couple hundred people” will make use of the bridge insurance offered through the state’s high-risk health insurance pool known as the Maryland Health Insurance Program.
But some groups are raising questions about potential conflicts of interest.
Earlier this month, Change Maryland issued a 15-page report questioning donations made to the Democratic Governors Association during the time that O’Malley chaired the organization. The review spotlights companies that collectively donated millions to the DGA and received lucrative state contracts.
One such example was United Healthcare Services, which donated $650,000 to the organization. Since 2008, it has been paid more than $2 billion in state contracts. Most recently, the state awarded Optimum/QSSI, a subsidiary of United Healthcare Services, an emergency contract to fix the state’s failing health insurance benefits exchange Web site.
Larry Hogan, chairman of Change Maryland and a declared Republican candidate for governor, said in an earlier interview that this contract alone raises conflict of interest issues because United Healthcare also offers plans through the state exchange.
In his State of the State speech last month, O’Malley acknowledged that the rollout of the health benefits exchange site was a failure and vowed to fix it.
The Office of Legislative Audits will begin with a review of documents. A second stage involving face-to-face interviews between auditors and health exchange officials will begin sometime after March 31.
“We want them to get the exchange up and running,” Middleton said, explaining the March 31 deadline. “We want them to get the system going and get people enrolled.”
The previously-scheduled review would not be completed until summer at the earliest — after the 2014 primary election on June 24..
Senate Minority Leader David R. Brinkley, (R-4), said the review doesn’t go far enough and is calling for an outside investigation.”
Brinkley and other Republicans want an independent investigation with subpoena power and forensic experts who will comb through the site looking for irregularities.
Middleton said there was no need to such an elaborate investigation, the demand for which he linked to “finger-pointing at the lieutenant governor.”
“That’s not my interest,” Middleton said. “My role here is what’s the best thing to do and where do we need to go from here.”
Lt. Gov. Anthony G. Brown led the implementation of the state’s response to the federal Affordable Care Act, sometimes called Obamacare. The struggles of the site are sure to become a campaign issue both in the Democratic primary in June and in the general election in November.