Federal officials are warning the state to get the Hawaii Health Connector up to speed or risk losing upwards of a billion dollars in matching Medicaid funds.
Earlier this year, the Centers for Medicare and Medicaid Services (CMS) found the health connector to be non-compliant with the Affordable Care Act.
Violations included unresolved IT issues, a non-integrated eligibility enrollment system and lack of financial sustainability.
Representatives from the governors office have been working with the Hawaii Health Connector to address the problems and develop a draft plan.
Pending its approval, CMS is providing limited funding for the program.
“Governor Ige and his administration will negotiate the release of federal grant funds to ensure compliance with the ACA in time for the Fall 2015 open enrollment,” said deputy chief of staff Laurel Johnston.
About 40,000 residents receive health insurance through the connector.