Audit into troubled launch lacks input from former MNsure chief

An exhaustive state legislative audit on the start-up problems with Minnesota's health insurance exchange lacked contributions from a key source — the executive director who had been in charge.

April Todd-Malmlov did not respond to an invitation and a subpoena from Legislative Auditor James Nobles to participate in his review of MNsure, according to the report released Tuesday.

"Her attorney contacted us on several occasions, but his conditions for an interview with the former director were not acceptable," the audit report states. "Primarily, her attorney said the former director would cooperate only if the Office of the Legislative Auditor paid all expenses she incurred by cooperating, including her attorney's fees."

Todd-Malmlov resigned during MNsure's first year of open enrollment as problems with the online health exchange grew. In a statement issued Tuesday, her attorney said Todd-Malmlov was willing to meet with Nobles "as long as her rights were honored."

"Ultimately, it was the Legislative Auditor's choice to not interview or meet with Ms. April Todd-Malmlov," said attorney Marshall Tanick, in a statement.

Nobles found that Todd-Malmlov and MNsure executives had not been forthcoming with the MNsure board or the governor before the exchange going live about the depth of the system's problems.

"It was frankly troubling to us," Nobles said in testimony to a House committee Tuesday. "It certainly seemed that the governor was not well-informed by the then-CEO of the risks and hazards of going live on Oct. 1, (2013)."

But in his statement, Tanick said that "administration officials were aware of the challenges related to MNsure's launch."

Nobles said he did not seek a court order compelling her to participate because he didn't want a protracted legal battle with Todd-Malmlov, who no longer lives in Minnesota.

Jeremy Olson • 612-673-7744 Chris Snowbweck • 612-673-4744