By Catharine Richert, Minnesota Public Radio News

Minnesota Legislative Auditor Jim Nobles on Tuesday ripped MNsure and its leadership for bungling the launch of the health insurance exchange.

Widespread problems with MNsure’s online enrollment system and customer service caused big problems for consumers, insurers, counties and the Department of Human Services, the auditor’s report said.

“MNsure did not deliver what was promised,” Nobles told a legislative hearing Tuesday afternoon. “MNsure performed poorly.”

Nobles’ office recommended lawmakers revamp the MNsure structure to give the governor, rather than the MNsure board, power to hire MNsure’s CEO.

It also said the Legislature should consider making the board purely advisory.

The audit also said any future technology work ordered by MNsure should be overseen by the state information technology services office.

Gov. Mark Dayton on Tuesday said he hadn’t read the entire MNsure audit but emphasized that the review was done during its troubled first year and that it’s improved since then.

Still, the governor said, “the buck stops with me” when it comes to MNsure’s accountability.

GOP lawmakers jumped on the audit as evidence MNsure needs to be overhauled.

The report “confirms what we have known to be true: MNsure is still failing to meet the promises of its Democrat architects,” state House Rep. Greg Davids, R-Preston, said in a statement.

The auditor noted that before the website’s launch, MNsure board members said they were getting a “fairly positive view” from April Todd-Malmlov, MNsure’s first CEO, about the system’s readiness.

“Board members did not believe they received enough information about system readiness, and some felt misled by MNsure staff leadership,” the report said.

Nobles also noted that Todd-Malmlov, who resigned under pressure in December 2013 following the botched launch, was subpoenaed for interview by the auditor’s office. However, she said she would only agree to it if she was paid.

“Her attorney said the former director would only cooperate if the Office of the Legislative Auditor paid all expenses she incurred by cooperating, including her attorney’s fees,” the report said.

Ultimately, she did not testify, Nobles said.

Key findings of the report:

• MNsure implemented its enrollment website in 2013 with serious technical problems. It did not adequately test the site, and it made insufficient use of state government technology experts.

• Federal law imposed an ambitious timeline on states developing exchanges. This challenge was heightened by late federal rules, delays in passing state legislation, and problems with vendor selection and performance.

• MNsure staff withheld information from the MNsure Board and other key officials before the enrollment website was launched.

• MNsure reported that it met its overall enrollment target in its first open enrollment period, but the target was seriously flawed. The target contained an error that resulted in an unrealistically low estimate.

• Many people who bought insurance through MNsure have been satisfied with the products they purchased. But the initial enrollment process was often lengthy, and technical problems frustrated consumers, insurers, and counties.

• About 28 percent of MNsure enrollees said they were uninsured immediately before enrolling.

• During its first year, MNsure failed to provide adequate customer service through its call center. Also, the roles played by consumer assisters were not sufficiently clear, so consumers were often referred back and forth among them.

MPR News reporter Tom Scheck contributed to this report.