The Hawaiian insurance marketplace has not met its goal for new signups. As a result, the state could be transferring operations to the federal Healthcare.gov website and marketplace in 2016.
States Given Options
As part of the Affordable Care Act, states were given the option of running their insurance marketplace or using the federal marketplace. The federal government spent $5 billion subsidizing state efforts to open and maintain these state insurance marketplaces. Twelve states, including Hawaii, California, and the District of Colombia decided to open a state-specific marketplace, instead of operating through the federal marketplace.
However, as many as half of these state marketplaces are losing money. This is a particular problem in smaller states, where there is a smaller pool of uninsured residents.
Hawaii’s Marketplace Issues