Feds to investigate Hawaii health exchange

HONOLULU — The federal government will conduct an investigation of Hawaii’s troubled health exchange after a request from the state Senate’s lone Republican.

Sen. Sam Slom announced the investigation Thursday. He said the federal Government Accountability Office chose to investigate the Hawaii Health Connector after his request.

Slom had written a letter to the federal government requesting an investigation in late March. He says taxpayers and lawmakers should be outraged at the Connector’s lack of planning and money management.

The Government Accountability Office confirmed Wednesday that the office will add Hawaii to the list of several states it’s investigating, Slom said. The office will look into how the Connector used more than $200 million in federal grants, he said.

Officials from Hawaii’s health exchange have said the exchange is not financially sustainable. The Legislature is considering supporting the exchange through funds or a fee to insurance companies.

Connector officials had not yet heard about the investigation Thursday, although they responded to information requests from the GAO in February.

“The Connector has not received any recent requests from the GAO,” executive director Tom Matusda said in a statement. “However, the Connector will respond appropriately to any request from the GAO.”