The Hawaii Health Connector, beset by delays, computer malfunctions and low enrollment since its inception in late 2013, expects to be cash-flow positive in fiscal year 2022.
The state's health insurance exchange created by the Affordable Care Act, also known as Obamacare, said in its annual report issued Monday that it is on the path to financial self-sustainability. But it said it will need approximately $28 million of taxpayer money over eight fiscal years to support the Connector's operations before it can generate enough revenue to support itself. The technology and the business support systems costs about $150 million to construct and operate for the first two years.
The Connector has projected it will incur a $2.5 million deficit this year after being cut off from the remainder of $204.3 million in federal grants. Since the beginning of this year that money only can be used for further development of the exchange, but not for operations.
In the annual report, the Connector reported that from inception through June 30, 2014, that it spent $104.4 million and had obligations for an additional $32.7 million of the overall $204.3 million grant funding. There was $67.3 million that was unspent.
The nonprofit has enrolled more than 15,000 people to date, up from fewer than 500 a year ago, and estimates it will generate between $950,000 to $1 million in revenue from a 2 percent service fee on plans in the fiscal year that ends June 30.
The Legislature appropriated $1.5 million for Connector operations through the first six months of this year, one-third of the Connector's $4.7 million request.
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