With clock ticking, MNsure adding staff for tax forms

MNsure is assigning an extra 25 workers to the job of creating tax forms that are required for health exchange shoppers to complete their filings with the IRS.

The state's health insurance exchange was supposed to send the forms by Feb. 1, but more than 14,000 have now been delayed for six weeks because of troubles with a new automated system for creating the documents.

The extra workers started Monday and are staffing a "manual" production line that is working in addition to the new automated process, said MNsure spokesman Shane Delaney. Taxes are due April 18.

"We are still confident that we can get them out by the tax filing deadline," Delaney said.

As of Tuesday, MNsure had sent 29,189 forms, or 67 percent of the 43,674 documents that must be sent.

A week ago, the job was about 62 percent done. Since then, MNsure has mailed 555 forms, and realized that another 3,157 forms don't need to be created. That's because shoppers bought catastrophic insurance or dental coverage — neither of which requires the 1095-A tax form — or they signed up for a health plan but never completed enrollment.

"We know that this is not ideal, and that it's causing headaches and frustration for people," Delaney said.

But the forms being sent by employers and insurers aren't due until March 31, and they aren't needed for filling out tax forms.

The 1095-A, however, is different because it allows people who buy through a government-run health insurance exchange to reconcile the tax credits they received for discounting premium costs.

MNsure users obtain tax credits based on an estimate of income, and then true-up at tax time when they know their actual income for the year. So, people like Maureen Cuthbert of Lakeville need the form, because her income for 2015 came in higher than she anticipated.

"I am going to have to pay back some of the discount that I received, so I really need that form," she said. "It's getting close to tax time and no one can even give me a target date when I'll be getting it, or if there's a problem with my account. … I feel frustrated."

Beyond trouble with the new automated process, MNsure says it's gone slow in creating documents to ensure accuracy.

In the coming days, the exchange will start using e-mail and regular mail to contact those who haven't received forms, he said.

Christopher Snowbeck • 612-673-4744