State-run health insurance markets that offer coverage under the Affordable Care Act are seeing high costs and low enrollment, which could lead more of them to turn operations over to the federal government or partner with other states, according to The Associated Press.
Twelve states and the District of Columbia are currently fully in control of their market exchanges. Experts believe about half of them face financial challenges.
After being awarded $205 million in federal grants, Hawaii has spent $139 million and enrolled 8,200 customers for individual coverage in 2015. Because its remaining funds do not enable it to sustain itself, the state is turning sign-ups over to HealthCare.gov for 2016.
Hawaii's switch made it the third state to join the federal enrollment system, following in the footsteps of Nevada and Oregon. Other states facing challenges include Minnesota, Massachusetts, Colorado, Maryland and Vermont.
After the Supreme Court ruled the Obama administration can keep subsidizing premiums in all 50 states, states have no downside in turning to the federal government.
"The viability of state health insurance exchanges has been a challenge across the country, particularly in small states, due to insufficient numbers of uninsured residents," said a statement from the office of Hawaii Governor David Ige.
More article on finance:
Nebraska hospital loses Medicare funding, plans to stay open
Why CFOs are avoiding social media
5 most-read finance stories: Week of July 20-24