HBE Board Chair Ron Sims (left) hugs former chair Margaret Stanley.
June 26 was a day to celebrate the past and a day to look to the future. After two years of chairing the State Health Benefit Exchange, Margaret Stanley is stepping down. Under her leadership, the HBE has received national recognition as one of the top three exchanges in the nation. Her replacement, former King County Executive Ron Sims, and HBE Executive Director Richard Onizuka, presented her with a proclamation from the Governor and farewell gifts.
But the main agenda item for the HBE Board Meeting at SeaTac was a draft budget for the next two years. HBE Chief Financial Officer Bob Nakahara presented a detailed 2015 Draft Baseline Operating Budget. The Draft 2015 Budget calls for expenditures of around $53 million, $13 million over what the State Legislature budgeted for in the 2013-2015 budget. Bob reminded the Board that in 2013 there was no history upon which to defend HBE projections, but now having just completed the first open enrollment period, the HBE can make a stronger case.
The presentation broke the Draft Budget down by HBE divisions, like Operations at $21 million and Communications at $4 million, and not by programs. So there was no discussion over troubled programs like the collection and aggregation of individual insurance premiums that is not required by the federal reform law. On the other hand there were cuts in a number of the divisions from 2014 levels. The HBE is projected to spend $127 million in 2014 but much of that is going into website technology final development and enhancements.
Richard and Chief of Staff Pam MacEwan explained that for 2015 they can pursue three different options for additional funding. First, subject to federal approval, they could carry over around $25 million in current federal grant funds for grant related HBE functions. Second, there may be an opportunity to secure new federal funding. Third, the HBE can make the case over the next few months for additional state funding.
Board member Ben Danielson expressed his dissatisfaction with the Baseline Budget. He wants to see more spending for communications, outreach, and new policy mandates.
The 2015 Draft Budget PowerPoint can be found at http://wahbexchange.org/files/6114/0379/8624/2015_Baseline_Operating_Plan_and_Budget_June_26_2014_Board_Meeting-FINAL_shorter_form.pdf .
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