The insurance executive thinks the exchange should be shut down and people be allowed to by insurance directly with insurance companies. The exchange has had some technical issues and of course is costing more money than anticipated. There’s an old 1974 law on the books that requires employers to provide subsidized insurance to employees and that is the one issue preventing Hawaii to meet goals of the Affordable Care Act. This kind of throws a monkey wrench into the small business use of the exchange.
The connector has used half of the $200 million fund given to the state by the Feds. The user fees though are only $40k so not a lot coming in there. The Governor has has expressed getting a waiver for Hawaii on the ACA. Kaiser Permanente supports the continued use of the Connector and are the only other participant other than than Hawaii Medical Service Association, who’s CEO is suggesting the closure. BD
HONOLULU — The chief executive of Hawaii's largest health insurance company is calling on Hawaii to shut down its beleaguered health insurance exchange, which was set up as part of President Barack Obama's signature health care law.
Michael Gold, president and CEO of Hawaii Medical Services Association, says the state shouldn't keep spending money on the Hawaii Health Connector, a system that he says is financially unsustainable and does not work.
"I think there's an alternative that Hawaii needs to pursue immediately," Gold said in an interview with The Associated Press
The rollout of Hawaii's health exchange was delayed and plagued with technical problems. The Connector was awarded more than $200 million in federal funds. It has used about $100 million. It signed up 9,217 individuals, plus 628 employees and dependents. To date, the Connector has raised only $40,350 in user fees, according to Nathan Hokama, the exchange's spokesman.