The head of the Hawaii Health Connector said Monday that nearly 200 workers will be affected as the health insurance exchange winds down operations.
The Connector, created by the Affordable Care Act, commonly referred to as Obamacare, said it started staff reductions Friday, laying off 29 temporary employees.
The Connector, which has spent $130 million in taxpayer money, is closing down most functions and moving them to the federal Obamacare program, healthcare.gov.
Gov. David Ige’s administration decided earlier this month to abandon the troubled Connector, which has struggled since its launch in October 2013 to meet enrollment targets, provide satisfactory service and raise enough money to be self-sustaining.
Prior to the layoffs, the exchange had 32 employees, 29 temporary staff and 12 full-time contractors.
The Connector also gave grants totaling $11.9 million to 36 nonprofit organizations to help promote its insurance policies.
"There are dozens of charitable organizations that have hired people on the federal grant," said Jeff Kissel, the Connector’s executive director. "The impact of the closing of the Connector operations is going to be a lot broader than the 70 people — which includes temporary and full-time staff — that are just working through the office."
The Connector also stopped taking new employer-group enrollments Monday for its Small Business Health Options Program, or SHOP, Kissel said.
"We will continue to service all our individual and family enrollments through Dec. 31," he said.
Individuals and families must re-enroll on healthcare.gov from Nov. 15, the start of open enrollment, through Feb. 28, for coverage in 2016.
The federal government is not offering any options for small business on healthcare.gov.
The transition to the federal exchange is scheduled to be completed by Oct. 15.
