Deloitte Consulting has agreed to general contract terms to help MNsure begin fixing underlying issues with its massive computer system, people with knowledge of the bidding process confirmed Thursday.
The agreement is pending, based on federal approval and a more detailed contract that would solidify the scope of the work.
Deloitte has built some of the most successful state-based insurance exchanges in Connecticut, Kentucky, Rhode Island and Washington. It recently signed a contract worth a reported $40 million to $50 million with Maryland, whose troubled insurance exchange was built using the same suite of original vendors as Minnesota.
The New York-based consulting firm also bid on the original contract with MNsure but was unable to come to terms with the state because it wanted $20 million more than Minnesota was willing to pay.
MNsure has set aside about $10 million this year to address broader technical issues with the online insurance exchange, but not all of that has necessarily been set aside for the new lead vendor. Seven companies submitted bids on the contract.
In a meeting with lawmakers on Wednesday, MNsure officials announced that they had agreed in principle to terms with an unnamed company to get the agency's glitch-filled website functional. MNsure Interim CEO Scott Leitz said he expects the new company to start work this month.
Time is of the essence, as the next round of open enrollment begins on Nov. 15.
MNsure officials were able to improve the experience for consumers in recent months, and most people were able to enroll using the website. But many of the "back end" operations, such as the important handoff between MNsure and insurance carriers, is still not automated, forcing insurers to resort to time-consuming manual processes to get people enrolled in their health plans.
