Hawaii’s 1332 waiver approved by CMS

CMS posted on its website late this afternoon that it had approved Hawaii’s 1332 waiver to opt out of the requirements of the SHOP, effective immediately.

From the CMS site:

On December 30, 2016, the Departments, having completed a review of Hawai’i’s application, approved Hawai’i’s State Innovation Waiver under section 1332 of the ACA subject to the state’s acceptance of the Specific Terms and Conditions (STCs).  This approval is effective for January 1, 2017, through December 31, 2021.

In a letter sent to Gov. Ige from Acting CMS Administrator Andy Slavitt, CMS laid out its approval language, subject to some final negotiations as part of “special terms and conditions.”

In those “special terms and conditions,” CMS awarded Hawaii the modest sum of $2.7 million over 5 years.  These were the dollars that were otherwise going to support tax credits for small businesses purchasing products on the federally facilitated exchange.  The State of Hawaii is now able to use those funds to implement this waiver.