By Malia Zimmerman Published May 15, 2015 FoxNews.com
HONOLULU – Federal taxpayers dumped more than $205 million into Hawaii’s ObamaCare insurance exchange, but after a steady downward spiral the once-highly praised Hawaii Health Connector is on life support.
The federal Centers for Medicare and Medicaid Services has already restricted grant funds to the Hawaii Health Connector, after telling officials in March it was out of compliance with the Affordable Care Act because of fiscal instability and ongoing IT issues.
With state lawmakers also blocking additional funds, the system is struggling to stay afloat. The governor’s office said it is doing what it can to salvage the situation, including approving $30 million to temporarily transition the local portal to the federal exchange, HealthCare.gov — where residents could continue to enroll over the next year while problems with the local site are addressed.
Laurel Johnston, deputy chief of staff for Gov. David Ige, claimed the state will “negotiate the release of federal grant funds” and ensure compliance with the law.
Whether they will succeed remains to be seen. CMS still has to accept the governor’s proposal — and the exchange reportedly is making contingency plans in case the system has to shut down entirely.
The drama has only hardened critics’ concerns that millions of taxpayer dollars are going to waste.
