Hawaii Obamacare exchange not fiscally sustainable, lawmakers told

Saturday, December 21, 2013

Hawaii Obamacare exchange not fiscally sustainable, lawmakers told

Watchdog.org

By Malia Zimmerman / December 20, 2013

photo courtesy of Hawaii Health Connecto

LACK OF INTEREST: Hawaii Health Connector sign ups still under a half of percent of Hawaii’s population

HONOLULU — Hawaii Health Connector isn’t financially sustainable and, because of that, should be a state agency, officials say.
The nonprofit state exchange received $204 million in federal money. Once that runs out, the exchange will be expected to fund its $10 million to $14 million in annual operations through fees on local insurance companies. The fees, now at 2 percent, are generated through a percentage of sales made through the exchange.
But numbers as of Dec. 7 released by the Hawaii Health Connector show just 683 people in Hawaii bought plans through the exchange, or less than 1 percent of Hawaii’s 1.4 million people.
Another 6,615 accounts were established, 220 of which were small businesses, but they have not completed the paperwork to buy insurance, exchange officials said.
Sanjeev Bhagowalia, the state’s IT director, and Pat McManahan, the state’s human services director, as well as representatives from Kaiser and HMSA health insurance, told state representatives at a Dec. 12 hearing they should consider allowing the state to take over the private nonprofit, which the Legislature set up to implement the Affordable Care Act here.

Bhagowalia said 3,000 to 4,000 people signing up through the exchange — out of a potential 1.4 million — is “not a good outlook for us,” and “the business model will not survive.”
McManahan encouraged lawmakers to act quickly because the federal money will evaporate by 2015.
“The time is now to make the decision. The longer it is postponed, the less opportunity,” McManahan said.

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Director Of Hawaii’s Obamacare Exchange Resigns After Delays, Low Signups

November 24, 2013 9:44 AM

This Oct. 21, 2013 photo shows the U.S. government Internet health insurance exchange HealthCare.gov. (credit: KAREN BLEIER/AFP/Getty Images)

HONOLULU (AP) — The director of Hawaii’s health insurance marketplace under President Barack Obama’s federal health care overhaul has resigned after delays in getting the exchange running and low signups in the first month.
Executive Director Coral Andrews said Friday that she was not asked to resign and decided to leave the Hawaii Health Connector on her own.
Andrews told reporters on a conference call that directing the exchange has been one of the most challenging yet fulfilling roles in her career.
“The Hawaii Health Connector has been my baby. It has required constant nurturing and attention,” Andrews said. “Although in many ways it is still growing and changing, the connector has reached a point where I now need to let go and let someone else take charge.”
Andrews is expected to work until Dec. 6.

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