Report: Hawaii’s $205 Million Obamacare Exchange Collapsing

The state-based healthcare exchange set up for Hawaiians under the Affordable Care Act is in financial and technological free fall despite a federal investment exceeding $200 million, Fox News reports.

The situation is so dire the federal government has ordered the state to draw up a contingency plan for shutting down Hawaii Health Connector and migrating an estimated 37,000 to 40,000 customers to the federal Obamacare exchange,, Fox reports.

The state responded with a blueprint to discontinue operations by Sept. 30 and lay off all staff — this after the Hawaiian legislature declined to fill in funding gaps caused in part by far fewer people than anticipated using the site to purchase coverage, the Honolulu Star Advertiser reports.

Technical difficulties also continue to plague the state site, and Hawaii is in danger of forfeiting $1 billion in federal health funds as a result of the ongoing financial and IT issues, Fox reports.