Bloomberg Law for HR Professionals is a complete, one-stop resource, continuously updated, providing HR professionals with fast answers to a wide range of domestic and international human resources...
Hawaii plans to close its state-sponsored health-care exchange after a federal agency said that funds were unavailable to support long-term operations, Gov. David Ige said June 5.
Ige, in a statement, said the private nonprofit Hawaii Health Connector exchange was “unable to generate sufficient revenues to sustain operations. The Centers for Medicaid and Medicare Services told exchange officials that federal funds no longer were available to keep the program operating,” he said.
“The viability of state health insurance exchanges has been a challenge across the country, particularly in small states due to insufficient numbers of uninsured residents,” Ige said. “The state of Hawaii has a high rate of insured residents due to employer-based health-care coverage and Medicaid program expansions.”
The state would try to ensure a smooth transition for those seeking health-care insurance during the November 2015 open-enrollment period, Ige said. State officials would seek to “determine what functions can be transitioned to state oversight to ensure compliance with the Affordable Care Act” by November.
The CMS, which is part of the Department of Health and Human Services, works with state governments to administer Medicaid and other health insurance programs, including those under the ACA. The CMS agreed to provide Hawaii with limited transition funds so the state can maintain marketplace support for consumers, Ige said, adding that the amount of transition funds had not been determined.
Hawaii was among 10 states with the least competitive commercial health insurance markets, the American Medical Association said Oct. 9, 2104, in its annual study of competition in U.S. health insurance markets. The other states were Alabama, Alaska, Delaware, Illinois, Louisiana, Michigan, Nebraska, North Dakota and South Carolina.
Hawaii's decision comes as the Supreme Court prepares to rule on whether the regulations were faithful enough to the ACA despite the lack of clarity that the federal exchanges could act as a state exchange with regard to the subsidies (King v. Burwell, U.S., No. 14-114, cert. granted 11/7/14).
The challengers claim that Congress did not intend to make tax-free subsidies available to those who bought insurance through the federally facilitated exchanges operating in most states.
An additional argument is whether the regulations were construed in such a manner as to unconstitutionally coerce states into setting up their own exchanges so those getting health insurance could qualify for the subsidy.
To overturn the regulation would mean employers in at least 37 states likely would not be subject to penalty provisions under the ACA for failing to provide health insurance to full-time workers because employees must have bought insurance from the exchange and received a premium subsidy to trigger the employer penalty.
For more information, see Compensation and Benefit's “Health Care Exchanges” chapter.
To contact the reporter on this story: Michael Trimarchi in Washington at email@example.com.
To contact the editor responsible for this story: Allison M. Gatrone at firstname.lastname@example.org.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to email@example.com.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to firstname.lastname@example.org.
Put me on standing order
Notify me when new releases are available (no standing order will be created)