Hawaii Health Connector

Nonprofit profile at a glance

EIN
453084351
IRS 990 coverage
2012–2013
Forms available
Form 990 2013
Location
Honolulu, HI, USA
Phone
8083124400
Rating
81
Verdict
STRONG
Rating confidence
Moderate
Sector
Public, Society Benefit N.E.C.

Official website

Reported finances

Revenue
$68,902,088
Expenses
$49,036,194
Assets
$67,806,661
Liabilities
$28,515,139

Source: IRS Form 990. Selected filing: tax year 2013. Amounts in USD.

Leadership & pay

27 people listed

Executive titles in this filing

  • TOM MATSUDA (EXECUTIVE DIRECTOR BEGINNING DEC '13)
  • CORAL T ANDREWS (EXECUTIVE DIRECTOR UNTIL DEC 2013)

Highest reported compensation

  • CORAL T ANDREWS (EXECUTIVE DIRECTOR UNTIL DEC 2013): $209,763 total reported compensation
  • RONALD G ELKINS (DIRECTOR OF TECHNOLOGY): $188,632 total reported compensation
  • KEVIN RANDALL HAUSE (DIRECTOR OF MARKETING & BUSINESS DEV): $155,160 total reported compensation

Source: IRS Form 990. Selected filing: tax year 2013. Names and roles reflect this filing, not necessarily current officeholders.

Overview

Mission

To help the people of Hawaii live happier & healthier lives by making quality health insurance accessible to all, making the acquisition of health insurance affordable and simpler, and by improving the integration between public and private health insurance plans.

What it reported doing in 2013

During the fiscal year ended june 30, 2014, the connector expended approximately $45.4 million dollars of program funding for $18.4 million of long term assets and $27 million of program expenses in order to design, develop and begin implementation of a health insurance exchange (hix) for Hawaii. These expenditures include costs for information technology development, purchase of licensing rights, project management, and personnel and administrative costs associated with the development of the infrastructure for the operating company. The connector plans to leverage the integrated eligibility system that the state of Hawaii (medquest/dhs/connector) is building, which will determine eligibility for all insurance affordability programs. This approach will consolidate health insurance selection.through this one-stop web portal, consumers may submit a single application and learn if their modified adjusted gross income potentially qualifies them for medicaid or whether they are eligible for premium subsidies to purchase health insurance.

Operating model

Revenue model
Grant-funded. 100% of the money available for current operations came from government grants.
Distribution model
Direct operator. The filing allocates 94% of reported program-service expenses outside its grant, affiliate-payment, and member-benefit lines. This expense classification does not rule out separately announced grant awards.

The verdict

STRONG - The filed numbers largely add up and a large share of available resources goes toward mission work. Total assets are small relative to annual expenses; liquid coverage is unknown and reported officer compensation is a large share of total spending, which may reflect staffing concentration.

Rating breakdown

  • Financial Efficiency: 68
  • Transparency & Controls: 91
  • Accountability: 100
  • Sustainability: 71
  • Growth: 60

Detailed rating inputs

Financial Efficiency

  • Mission deployment rate: 65.8%; rating input score 66
  • Program expense ratio: 92.5%; rating input score 93
  • Fundraising efficiency: Limited

Transparency & Controls

  • Consistency checks: 100%; rating input score 100; 67th percentile among comparable filings
  • Pay-setting controls: 5 of 6 controls in place; rating input score 83
    • Compensation committee: Pass
    • Independent consultant: Pass
    • Other Form 990s reviewed: Missing
    • Written employment contract: Pass
    • Compensation survey or study: Pass
    • Board or committee approval: Pass
  • Foreign activity oversight: Limited
  • Grant itemization coverage: 100%; rating input score 100; 76th percentile among comparable filings
  • Major donor itemization: Yes; rating input score 100
  • Related-party transparency: Limited

Accountability

  • Independent voting board: 100%; rating input score 100; 84th percentile among comparable filings
  • Governance controls: 9 of 9 controls in place; rating input score 100
    • Conflict-of-interest policy: Pass
    • Whistleblower policy: Pass
    • Document-retention policy: Pass
    • CEO compensation review process: Pass
    • Other executive compensation review process: Pass
    • Form 990 shared with the board: Pass
    • Board meeting minutes documented: Pass
    • Audit committee oversight: Pass
    • Independent financial-statement audit: Pass

Sustainability

  • Operating margin: 28.8%; rating input score 94; 94th percentile among comparable filings
  • Total-asset coverage ratio: 1.38; rating input score 54; 54th percentile among comparable filings
  • Liabilities to assets ratio: 0.42; rating input score 50; 50th percentile among comparable filings
  • Officer compensation ratio: 2.3%; rating input score 46; 46th percentile among comparable filings

Growth

  • Program expense growth: Limited
  • Revenue growth: 67.1% per year; rating input score 100; 99th percentile among comparable filings
  • Asset growth: 57% per year; rating input score 100; 99th percentile among comparable filings

Details

  • Where the money goes: 65.8% of revenue deployed · 92.5% of spending went to programs
  • Governance: 15 of 15 board members independent · 9 of 9 filing controls reported
  • Programs: 1 filed program accomplishment · $45.4M in reported program spending
  • Leadership: top reported pay $210K · 27 people listed · 5 of 6 pay-setting controls reported
  • Highest-paid contractors: 5 contractors listed · $29.5M reported
  • Consistency: 34 of 34 current checks pass
  • Schedules: 6 filed schedules · includes major donors, grants, and executive pay
  • Filing history: 2 filing years from 2012 to 2013
  • Contacts: How to reach this organization
  • Money network: 45 filed money-flow records
  • Related organizations: 35 filed related-organization links
  • Grant readiness: Federal tax and exclusion status, award history, and grant-maker relationships.
  • People: Everyone the filings name, and which of them the filings identify by more than a name.

Key Signals

Signals prioritize questions for review. They are not findings of misconduct.

  • Review — Sustainability: Total-asset coverage ratio scored 54/100.
  • Moderate — Sustainability: Officer compensation ratio scored 46/100.
  • Review — Sustainability: Liabilities to assets ratio scored 50/100.