HONOLULU — State officials say Hawaii is spending $32 million to rebuild a tax collection system that has never worked properly.
HONOLULU — State officials say Hawaii is spending $32 million to rebuild a tax collection system that has never worked properly.
And lawmakers are questioning why Hawaii’s health insurance exchange would hire the same contractor to build the state’s online marketplace at the center of President Barack Obama’s health care overhaul.
The Honolulu Star-Adver-
tiser reports Senate lawmakers are getting a status update on the tax system during a hearing Wednesday.
CGI Group Inc. was paid $87.5 million from 1999 to 2011 to modernize a system for the state Department of Taxation.
Senate President Donna Mercado Kim said she doesn’t think the Hawaii Health Connector should have hired CGI to a $53 million contract given past problems.
“I would want to get a company that had a good track record, not one that had a bad track record in our state. Let the evidence speak for itself,” Kim said, pointing toward problems with both systems.
Hawaii’s health exchange was delayed two weeks at the start of open enrollment because of software problems, with consumers unable to see or compare plans or apply.
CGI says its tax system has been successful, helping collect $385 million in delinquent taxes it would not have and cutting refund times in half or more.
“Together, CGI and the state provided improved services to Hawaii’s taxpayers and increased revenues from delinquent taxes,” CGI spokeswoman Linda Odorisio said.
Coral Andrews, executive director of the Hawaii Health Connector, said CGI was picked through a competitive procurement process.
“The procurement process complied with federal guidelines and oversight, board oversight and approval in accordance with the Connector’s procurement policy,” Andrews said.
The connector is a private entity set up with federal funds to run the exchange. It plans to be self-sufficient by 2015 by charging insurers a 2 percent fee to sell insurance plans to customers through the site.
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Information from: Honolulu Star-Advertiser, https://www.staradvertiser.com