The Minnesota Department of Human Services said there is no way it can economically recover more than $30 million in unpaid health premiums the agency billed improperly.
The MinnesotaCare billing problems date back to MNsure's early software problems in January of 2014 and were not corrected until the spring of 2016.
Acting DHS Commissioner Chuck Johnson said in a written statement that it likely would cost more to collect the unpaid premiums than could be recovered.
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The agency said it has concluded that the best way to resolve the matter is to write off the money the state is owed.
While DHS wants to close its books on the matter, some Republicans in the GOP controlled Legislature are pushing legislation that could force DHS to collect payments it's owed by July 1.