House lawmakers have introduced a package of bills aimed at fixing the state’s troubled Hawaii Health Connector.

The most sweeping change involves turning the private, nonprofit entity the Legislature created in 2011 into a state agency, administratively attached to the Department of Commerce and Consumer Affairs.

Proposals to restructure the Connector come three months after it fumbled the start of the online health insurance marketplace, the cornerstone of President Barack Obama’s Affordable Care Act.

"It goes without saying that the Connector has had a rough time with their rollout for many reasons, but at end of the day, if the Connector fails, it’s going to be the people of Hawaii who will be the losers," said House Health Committee chairwoman Della Au Belatti (D, Moiliili-Makiki-Tantalus).

The Connector, assigned to enroll Hawaii residents, particularly an estimated 100,000 uninsured, into medical coverage, signed up 2,709 people and took in applications from 350 businesses as of Jan. 11, the latest figures available. However, more than 17,000 people have applied for health insurance through the Connector over the past three months, lawmakers said.

"We appreciate that legislators understand the mission of the Hawaii Health Connector and are seeking solutions to strengthen the viability of the organization," Tom Matsuda, the Connector’s interim executive director, said in a statement. "Building and sustaining the Connector must be a collaborative effort and the Connector team is committed to providing information to help legislators make informed decisions to benefit the community."

Matsuda didn’t attend a House press conference Thursday.

Belatti said the Connector has yet to produce a sustainability model based on its operating budget. The nonprofit is currently funded with $204.3 million in federal grants that expire at year’s end and is required to be self-sufficient by 2015.

Belatti said the state would need an estimated $15 million annually to operate the Connector.

"If we keep them outside (government) and have to bail them out, what happens then?" she said.

The state also is starting an audit of Connector operations, as required by statute, Belatti added, noting that lawmakers may ask the state auditor’s office to speed up their efforts so that legislators can make informed decisions.

The bills also would remove insurance company representatives from the Connector’s board of directors and create a special trust account that insurers would pay into to fund Connector operations.

"The problems cannot be solved by a single silver bullet or by simply saying, ‘Let’s throw it all out and start fresh.’ If you do, you’re doomed to repeat the same failures," Angus McKelvey (D, Lahaina-Kaanapali-Honokohau), chairman of the House Consumer Protection and Commerce Committee.