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Hawaii health care exchange needs $4.7M next year

By Associated Press

LAST UPDATED: 04:31 p.m. HST, Apr 09, 2014

The head of the Hawaii Health Connector told a panel of lawmakers Wednesday that the troubled health exchange will need $4.7 million to be financially sustainable next year.

Tom Matsuda, interim executive director of the Connector, gave the figure at a legislative hearing Wednesday. The exchange's board spent the weekend analyzing its budget and coming up with a sustainability plan, making cuts to salaries, benefits, outreach and public relations, he said.

"We have made fairly deep cuts in all of those areas where we could cut," Matsuda said.

In 2016, the Connector anticipates a shortfall of $8.9 million, according to preliminary budget projections it submitted to the Legislature. The Legislature is considering propping up the Connector, either through a fee on all insurers or through an appropriation from the general fund.

Acting State Auditor Jan Yamane, who presented preliminary results from an audit of the exchange, said the Connector had spent $55.5 million by the end of 2013. The Connector spent about $35 million on information technology contracts, including software and licensing, through the end of 2013, according to Yamane's preliminary numbers. Most of that, nearly $22 million, went to the contractor CGI. The exchange also paid about $8 million to Mansha, $3.7 million to PCG and $1.2 million to Turning Point, according to the preliminary audit report.

The board did not make cuts to existing contracts in its plan, Matsuda said.

"What we want to do is negotiate with our vendors to see if we can reduce those costs," Matsuda said. "It's clear that if we don't, we're not going to be able to survive."

Yamane said her office anticipates delivering a full audit report in late fall.

Rep. Della Au Bellati, D-Honolulu, said it's urgent that government representatives weigh in as the Legislature considers financial support to the exchange. The Legislature is demanding more transparency and changes to the Connector's board, she said.

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realist3463 wrote:
What a waste. Fire them all.
on April 9,2014 | 04:09PM
serious wrote:
Agreed, send the bill to Nancy Pelosi!!!
on April 9,2014 | 04:13PM
lwandcah wrote:
4.7 this year, 5.8 next, 6. something following, another 1/2% down the road, oh wait there are less on the choo choo we anticipated lets go another 1/2%... Where does it all end?
on April 9,2014 | 05:03PM
Pocho wrote:
go tell President Obama we need the xtra cash to support the ACA(ObamaCare) You all voted for him!
on April 9,2014 | 04:16PM
yskeulb wrote:
The Connector is not looking so healthy. Time to pull the plug.
on April 9,2014 | 04:16PM
kailua000 wrote:
and? we expected something different?
on April 9,2014 | 04:18PM
HealthyandHappy wrote:
Amateurs. I bet Wesley Lo of Maui Hospital could lose more than that.
on April 9,2014 | 05:16PM
HD36 wrote:
erthrop where are you?
on April 9,2014 | 05:19PM
HealthyandHappy wrote:
the computer broke. The talking points never arrived.
on April 9,2014 | 05:49PM
CEI wrote:
Oops. Looks like Barry-Care in Hawaii is not meeting the lofty expectations all of the fantasy land progressives had for it. Make no mistake, between the ill-conceived rail and this train wreck - no pun intended - Hawaii's taxpayers are going to get railroaded - again no pun intended.
on April 9,2014 | 05:21PM
DAGR81 wrote:
Why, after failure after failure, does the State of Hawaii insist on contracting CGI?
on April 9,2014 | 05:46PM
HealthyandHappy wrote:
Do you think they pay the highest kickbacks?
on April 9,2014 | 05:48PM
Waterman2 wrote:
on April 9,2014 | 07:44PM
gmkhawaii wrote:
Very UNFORTUNATE as to how STUBBORN a person in can be when THEY believe that what they are trying to accomplish is for the greater good. Even if the MAJORITY of people disagree and with the headaches and problems that is being created how can that SAME PERSON still turn a blind-eye? can you read this Mr. President of the United State of America?
on April 9,2014 | 05:58PM
rigormortis wrote:
They file for bankruptcy. Catch their creditors for shoddy work. If and when premiums are paid, they take their cut, government gives insured their credit, and we end up paying for it one way or another.
on April 9,2014 | 06:21PM
Barefootie wrote:
So, who do the people sue, to get their money back that has been spent on the Health exchange that still suffers from a lack of ingenuity and programming? This is just another example that CGI is incompetent to do business in the State of Hawaii, and yet continues to get contracts that bleed the Hawaii taxpayer!
on April 9,2014 | 06:22PM
Waterman2 wrote:
Gotta pass it to see what is in it.....yup....passed it and now we will spend the rest of our lives finding out what is in it. Anybody know where there are any real leaders in this country ? Been using tne word kapulu a lot this year...
on April 9,2014 | 07:43PM
saywhatyouthink wrote:
They've only enrolled 7000 people and it costs 15 million a year? Good Job Neil
on April 9,2014 | 08:16PM
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