Minnesota may have improperly spent federal grants that were meant to help establish its health insurance marketplace, according to HHS' Office of Inspector General.
The state was awarded $189.6 million in grants to establish its own Affordable Care Act exchange. The OIG has flagged around $1.2 million as possibly being misspent.
Minnesota made assumptions based on what the federal watchdog called outdated methodology, according to the OIG. It also stated that the Minnesota marketplace reimbursed a contractor twice because it did not create or maintain complete and accurate inventory records.
The agency recommends the state return the money in question. Minnesota officials are appealing the decision but agreed that they should create better inventory records.
ACA exchange funding audits have also turned up similar problems in Maryland, Nevada, New York, Vermont and Washington, D.C.