Hawaii to shutter state health insurance exchange

Hawaii will abandon its state-based health insurance exchange and transition to the federal marketplace, known as HealthCare.gov, the state announced Friday.

Gov. David Ige (D) announced Hawaii Health Connector, a private nonprofit, would be shut down because it “has been unable to generate sufficient revenues to sustain operations.”

{mosads}Last week, the Centers for Medicaid and Medicare Services informed the exchange that federal funds were no longer avilable to support its long-term operations, Ige’s office said.

The exchange has suffered from technological issues and low enrollment numbers.

The move comes after the state invested $130 million in the exchange, according to the Hawaii Star-Advertiser.