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The nonprofit Hawaii Health Connector has won $128 million in federal funds to implement the state’s first health insurance exchange, designed to provide residents access to affordable medical coverage.
The U.S. Department of Health and Human Services announced Monday the multiyear grant, which will pay for a customer service call center, consumer assistance program, general operations and maintenance for the Connector through December 2014.
The federal Patient Protection and Affordable Care Act, also known as Obamacare, which takes effect in January, requires states to set up health insurance exchanges, which will match qualified uninsured individuals to subsidized health care plans and allow small businesses to apply for federal tax credits.
To date, Hawaii has received about $205 million from the federal government to build an online health insurance exchange website where health plans compete and consumers compare medical plans. The exchange could be used by as many as 100,000 uninsured Hawaii residents to select their health care coverage.
"The Connector remains focused on our mission to provide a state-based health insurance exchange that is committed to supporting the unique needs of our community," said Coral Andrews, executive director of the Hawaii Health Connector, in a news release.
Roughly 35 percent of grant funds will go toward community outreach and services, including in-person assistance to help consumers enroll in health plans, as well as call centers, advertising and educational events statewide to inform the community about health exchange benefits, said Rose Hughes, the Connector’s spokeswoman.
The remaining 65 percent of the money will pay for maintenance and operations of the health exchange website, she said. The company plans to hire more than 100 employees or contractors to run the exchange.
The board of the Connector hasn’t determined how the exchange will be funded after 2014, when the law mandates it be self-sustaining, she said.
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