Connector board exodus clouds exchange’s future

Almost half of the board of directors for the Hawaii Health Connector will change at the end of the month, leaving uncertain the future of the state’s troubled health insurance exchange.

The terms of at least four of the 14 board members will end June 30. They include Faye Kurren, president and chief executive officer of Hawaii Dental Service; Jennifer Diesman, vice president of government relations for the Hawaii Medical Service Association; Clementina Ceria-Ulep, associate professor at the University of Hawaii School of Nursing and Dental Hygiene; and Gwen Rulona, director of education and legislation at United Food and Commercial Workers Local 480.

Robert Hirokawa, CEO of the Hawaii Primary Care Association, resigned in March, and Joan Danieley, vice president of health plan service and administration for Kaiser Permanente Hawaii, will be required to step down upon approval of Senate Bill 2470, which removes insurance company representatives from the board. Sherry Menor-McNamara, president and CEO of the Chamber of Commerce of Hawaii, also stepped down as board chairwoman this month.

The bill, currently awaiting Gov. Neil Abercrombie’s signature, requires members appointed to the board to have experience in the health industry and to address issues including boosting enrollment among the uninsured, getting more health plans to participate on the Connector and making the Connector sustainable without the need for continued state funds. The bill also mandates state officials to be ex officio nonvoting members.

The Connector, which has been plagued with software problems that led to missing its Oct. 1 launch by two weeks, came under fire early on for having health insurance executives as board members helping to design the system. Critics of the nonprofit organization established in 2011 as part of the Affordable Care Act complained of potential conflicts of interests among board members, including between competing state agencies, and limited transparency.

"The consumer is the clear winner when the insurers are no longer on the board because of the conflicts of interest that has always been a concern since the inception of the Connector," said Steve Tam, AARP Hawaii’s director of advocacy. "As board members transition off the board, it’s crucial that new board members have the best interests of consumers in mind, and conduct business in an open and transparent manner."

Connector officials said at a meeting Friday that they are requesting approval from Abercrombie to extend the terms for Rulona and Ceria-Ulep until Oct. 1 to keep quorum within the board, which is seeking nominations to fill the upcoming vacancies. The governor appoints members who are subject to approval by the Senate.

Meanwhile, Connector officials haven’t said how they plan to operate the exchange once $204.3 million in federal funds ends this year or how they plan to increase enrollment, which totaled just over 10,000 as of Friday.