California: Marketplace Releases Proposed Budget

Covered California released a proposed $332 million budget for fiscal year 2015-2016, in which the Marketplace begins the fiscal year with nearly $200 million in reserve funding and ends it with $194 million. While Covered California will use approximately $100 million in remaining federal establishment funding, the Marketplace plans to transition to relying solely on qualified health plan assessments to support ongoing operations. The Covered California Board will vote on the proposed budget during the next monthly Board meeting.

Hawaii: Marketplace Addresses Non-Compliance

Governor David Ige's (D) administration has announced that the Hawaii Health Connector (HHC) will address ACA non-compliance issues identified in its marketplace—including unresolved IT issues, a non-integrated eligibility enrollment system, and lack of financial sustainability—through a plan developed jointly by the State and HHC in time for the fall 2015 open enrollment. If CMS determines that the State's plan is inadequate, Hawaii risks losing $1 billion in federal Medicaid matching funds in addition to grant funding for HHC, which has already been restricted. According to reports by the Associated Press, Hawaii’s plan calls for using the Federal government's information technology system to run Hawaii’s State-based Marketplace.