With the private non-profit Hawaii Health Connector no longer receiving federal funding, the state announced Friday it is taking steps to ensure a smooth transition for those Connector participants who will have go into the federal exchange during the November 2015 open enrollment.
According to the governor’s office, the Hawaii Health Connector has been unable to generate sufficient revenues to sustain operations and has been non-compliant with the Affordable Care Act despite efforts to resolve those issues.
The Centers for Medicaid and Medicare Services (CMS) informed the Connector last week that federal funds were no longer available to support its long-term operations.
The Connector’s consumer support operations will continue to assist with the November open enrollment.
Based upon ongoing discussions with the state and the Connector, CMS has agreed to provide limited funds for the transition so that Hawaii can maintain a Supported State-based Marketplace and provide local customer support through the Connector.
The amount of CMS transition funds has yet to be determined.
“The state remains committed to offering health care coverage through the Prepaid Health Care Act as it has for the past 40 years,” said Gov. Ige. “The state continues to provide millions of dollars to serve 300,000 Hawaii adults and children who receive health care coverage through Medicaid.”
Hawaii has a high rate of insured residents due to employer-based health care coverage and Medicaid program expansions.