HHC Non-Compliance Could Cost $1B

The Centers for Medicare and Medicaid Services earlier this year found that the Hawai’i Health Connector was non-compliant with the Affordable Care Act.

According to State of Hawai’i officials, the issues involve unresolved IT issues, a non-integrated eligibility enrollment system, and a lack of financial sustainability. The state administration was contacted by CMS about the issues. Since February, Governor David Ige’s administration has worked with HHC to determine the best way to address them.

Funding that was being provided to HHC by CMS has been restricted. Limited funding is currently being provided, pending the approval of a developed draft plan by the state and HHC.

“Our first priority is to ensure the continuity of coverage for the 37,000 to 40,000 Hawai’i residents who are receiving health insurance coverage through HHC,” said HHC Executive Director Jeff Kissel.

The state could lose $1 billion in matched federal Medicaid funds if CMS doesn’t accept the plan being developed.

“Governor Ige and his administration will negotiate the release of federal grant funds to ensure compliance with the ACA in time for the Fall 2015 open enrollment,” said Deputy Chief of Staff Laurel Johnston.