CEO Report to the Board

1. Budget and Dashboard

2. Administrative Issues- Building Updates, IT, Website

3. Staffing- Introduce New Staff, Staff Changes

4. Legislature, CCIIO, CMS

5. External Outreach

6. Policy Issues

7. Key Implementation Milestones

8. Preview Agenda

9. Questions

LEVEL I – ESTABLISHMENT GRANT

1

Note: Effective November 1, 2012 CCIIO has authorized the transfer of

remaining balance of the grant from HCA. All vendor contracts have been

formally assigned to HBE at this time. HBE is obtaining formal approval to

spend down the remaining Level I grant award.

EXPENDITURES FROM INCEPTION THROUGH MARCH 2013

CATEGORY LEVEL I

GRANT BUDGET TOTAL

EXPENDITURES BALANCE

REMAINING % OF

TOTAL

SALARIES AND BENEFITS $ 2,703,000 $ 473,000 $ 2,230,000 83%

TRAVEL 57,000 25,000 32,000 56%

EQUIPMENT 1,413,000 418,000 995,000 70%

SUPPLIES 298,000 96,000 202,000 68%

CONTRACTUAL (IT) 15,031,000 12,102,000 2,929,000 19%

CONTRACTUAL (Non-IT) 2,330,000 1,967,000 363,000 16%

OTHER 1,112,000 94,000 1,018,000 92%

Total $ 22,944,000 $ 15,175,000 $ 7,769,000 34%

100% 66% 34%

LEVEL II – ESTABLISHMENT GRANT

2

EXPENDITURES FROM INCEPTION THROUGH MARCH 2013

CATEGORY LEVEL II

GRANT BUDGET TOTAL

EXPENDITURES BALANCE

REMAINING % OF

TOTAL

SALARIES AND BENEFITS $ 27,232,000 $ 3,229,000 $ 24,003,000 88%

TRAVEL 152,000 37,000 115,000 76%

EQUIPMENT 1,543,000 576,000 967,000 63%

SUPPLIES 59,000 18,000 41,000 69%

CONTRACTUAL (IT) 83,702,000 25,325,000 58,377,000 70%

CONTRACTUAL (Non-IT) 32,788,000 3,091,000 29,697,000 91%

OTHER 4,346,000 497,000 3,849,000 89%

MEDICAID ALLOCATION (21,931,000) - (21,931,000) 100%

Total $ 127,891,000 $ 32,773,000 $ 95,118,000 74% 100% 26% 74%

Washington Health Benefit Exchange

March 2013 Actual vs. Budget Operational Analysis

Washington Health Benefit Exchange Modified Cash-Basis Statement by Category

From 1/1/2013 Through 3/31/2013

March

Actual

March

Budget

Variance

Favorable/

(Unfavorable)

Variance

% YTD Actual YTD Budget

YTD Variance

Favorable/

(Unfavorable)

YTD

Variance

%

Expense

Salaries 443,000$ 789,000$ 346,000$ (a) 44% 1,227,000$ 2,368,000$ 1,141,000$ (a) 48%

Benefits 117,000 229,000 112,000 (a) 49% 322,000 687,000 365,000 (a) 53%

Consulting 594,000 882,000 288,000 (b) 33% 1,856,000 2,646,000 790,000 (b) 30%

IT Infrastructure 9,000 42,000 33,000 (c) 79% 236,000 126,000 (110,000) (c) -87%

General & Admin 48,000 117,000 69,000 59% 293,000 350,000 57,000 16%

Facility & Related 166,000 1,355,000 1,189,000 (d) 88% 271,000 1,665,000 1,394,000 (d) 84%

Contractual 8,696,000 2,788,000 (5,908,000) (e) -212% 14,716,000 15,610,000 894,000 (e) 6%

Total Expense 10,073,000$ 6,202,000$ (3,871,000)$ -62% 18,921,000$ 23,452,000$ 4,531,000$ 19%

Explanations

(a) - Due to delays in hiring compared to budget - See next page for FTEs hired by department.

(b) - Actual consulting expenditures are lower than budget primarily due to delayed timing of consulting activities in the Policy and Legal departments.

YTD is lower than budget primarily due to Call Center budget timing difference. Call Center deployment is on schedule.

(c) - IT Infrastructure costs are higher than budget primarily due to timing difference. Purchases are within budgeted yearly amount.

(d) - Budget now includes furniture, fixtures and equipment of $1.1M for the new office building - timing difference.

(e) - March contractual expenditures are higher than budget primarily due to completion of delayed Deloitte February delieverables.

Washington Health Benefit Exchange Modified Cash-Basis Statement by Department

From 1/1/2013 Through 3/31/2013

3

March

Actual

March

Budget

Variance

Favorable/

(Unfavorable)

Variance

% YTD Actual YTD Budget

YTD Variance

Favorable/

(Unfavorable)

YTD

Variance %

Expense

Executive Office 55,000$ 81,000$ 26,000$ 32% 137,000$ 242,000$ 105,000$ 43%

IT 9,338,000 3,318,000 (6,020,000) (a) -181% 16,899,000 17,199,000 300,000 2%

Operations (NG) 139,000 602,000 463,000 (b) 77% 328,000 1,806,000 1,478,000 (b) 82%

Communications 89,000 219,000 130,000 (c) 59% 307,000 656,000 349,000 (c) 53%

Policy 104,000 342,000 238,000 (d) 70% 454,000 1,026,000 572,000 (d) 56%

Finance & Admin 259,000 1,432,000 1,173,000 (e) 82% 607,000 1,897,000 1,290,000 (e) 68%

Operations (SHOP) 56,000 90,000 34,000 38% 107,000 271,000 164,000 61%

Legal 33,000 118,000 85,000 (f) 72% 82,000 355,000 273,000 (f) 77%

Total Expense 10,073,000$ 6,202,000$ (3,871,000)$ -62% 18,921,000$ 23,452,000$ 4,531,000$ 19%

2013 FTEs by Department

March

Actual FTEs

March

Budgeted

FTEs Variance

Variance

%

Executive Office 3 4 (1) -25% (a) - Primarily due to completion of February deliverables.

IT 21 21 0 0% (b) - Primarily due to budget timing. Call Center is on schedule.

Operations (NG) 8 17 (9) -53% (c) - Primarily due to delays in hiring.

Communications 9 11 (2) -18% (d) - Primarily due to lower than expected consulting costs.

Policy 7 8 (1) -13% (e) - Primarily due to addition of $1.1M FF&E budget for new facility.

Admin & Finance 13 15 (2) -13% (f) - Due to delay in hiring and lower than expected consulting costs.

Operations (SHOP) 7 8 (1) -13%

Legal 2 3 (1) -33%

Total FTEs at month end 70 87 (17) -20%

Support Initial Exchange Recruitment

Internal Operations

Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep

2013 2012

Revenue Source/Sustainability

Health Benefits Exchange 2012 -2014 Executive Dashboard

Financial Operations and Administration

Rpt to Legis

Establish Internal Operations

Board Decision

Model Options Rec Revenue Mech/s

Hire Controller

Hire HR Manager

Impl. Accting System

Oct Nov Dec Jan

2014

Financial Management Finalize Fed. Compliance Manual

Finalize External Audit for Level 1, 2, 2014

forward

Draft – HBE Internal As of March

Perf. Based Review/ New employee onboarding

New Office Building

Finalize Architectural/Space Planning Office Prep and Move

Marketing, Outreach, PR Communications

Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep

2013 2012

Branding

Health Benefits Exchange 2012 -2014 Executive Dashboard Communications

Design for online presence

Present Marketing/ Outreach Plan to Board

Board Approval - Name

Paid Media

Oct Nov Dec Jan

2014

Identify HBE Name

Develop Plan/Campaign

Secure Sponsorships and Partnerships

Run Paid Media

Navigators

Board Presentation

TAC/AC Refine Recs

Board Decision

Open for Applicants

Select Navigators

Share selections, Outreach plan and Welcome Packet with Board

Train Outreach Network

Continuing Education Process

Draft – HBE Internal As of March

Present Advertising Plan to Board

Req. for In-Person assistants

Release RFP

Coordinated Elig. Determination process

Rating Factor Recs Info Display Plan

Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep

2013 2012

Consumer Rating System

Health Benefits Exchange 2012 -2014 Executive Dashboard Policy

Dental Plans Certification

Qualified Health Plans Certification

Board Approves Criteria

Evaluate Sources/ Services Phase 1

Board Decision Rating Factors

Release Application to carriers

Oct Nov Dec Jan

2014

Content decision for Phase 1

2015 Phase 2 Consumer Rating Solution Available

Board Decision Dental Plans

Dental Plan Issues/Recs Determine Cert. Process

Develop Application

Develop single application process

Process to verify citizenship & income with Fed. hub Develop/Define Eligibility

& Enrollment Processes

Draft – HBE Internal As of March

Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep

2013 2012

Health Benefits Exchange 2012 -2014 Executive Dashboard External Operations

Oct Nov Dec Jan

2014

QA Process Development

Release Joint RFI

Plan Manager Certification

Plans submit information OIC/Exchange

Call Ctr. Agreement Medicaid

Select Vendor Vendor Contracted

Call Center Implemented

Call Center

Plan Operations

Cust. Service Protocols/ Scripts

Train Call Center staff

External Operations

Release RFP

Draft – HBE Internal As of March

Board approves QHPs

Notify Selected QHPs

Open Enrollment Begins

Certify Dental Plans

Accept Dental Apps

Implement Individual Resp.

Deter./Cert. of Exemption &

Medicaid Eligibility

processes

Develop Plan and Migrate Services as needed

Establish Information & Technology Infrastructure

Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep

2013 2012

Health Benefits Exchange 2012 -2014 Executive Dashboard Information and

Technology

Vision for IT Infrastructure & Services

Impl. Initial Capabilities & System Mgmt. Processes

Oct Nov Dec Jan

2014

Go Live 8/5/13

Exchange Business Applications

Testing Complete 6/9/13

Design Complete 11/13/12

Plan Management

Open Enrollment Design Complete

3/13/13

Testing Complete 8/30/13

Go Live 10/1/13

SHOP Design Complete

12/10/12 Testing Complete

6/26/13 Go Live 10/1/13

Administration Design Complete

3/8/13 Testing Complete

8/30/13 Go Live 12/31/13

CCIIO Reviews

ID services to be migrated from

HCA/Others

Draft – HBE Internal As of March

Version 2.0 Estimated Completion

8/2014

Train Agents/Brokers

Collaborate with Carrier- to ID Risk Rating

Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep

2013 2012

Agent and Brokers Roles

Health Benefits Exchange 2012 -2014 Executive Dashboard SHOP

Establish SHOP

Board Action on Commissions

Agent/Broker issues/Rec

Develop Training

Oct Nov Dec Jan

2014

Develop Employee, Employer, Broker SHOP Experience

Gain answers from CMS/OIC

Board Introduction to SHOP Experience

Broker SHOP Experience

Draft – HBE Internal As of March

Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep

2013 2012

Health Benefits Exchange 2012 -2014 Executive Dashboard Legal Services

Oct Nov Dec Jan

2014

Receive Federal Rules/Guidance (Est.) Note: Proposed rules rcvd. in late Jan)

Consult with other agencies

Transition Public Record work from HCA to HBE

Establish Legal Policies

Appeals Process

Establish Process and Records Retention Schedule

Draft – HBE Internal As of March

Transition Legal Work from AGO

Conflict of Interest & Ethics Policies- Board Review

Develop Appeals process and hire staff

Appeals Process

Washington Health Benefit Exchange Speaking Engagement Calendar

Speaker April 2013 May 2013 June 2013 July 2013 August 2013 September 2013 October 2013 November 20134/8-10: World Health Care

Congress (Washington DC)

5/8-10: AF4Q (Chicago) 6/19: Board (Seattle) 7/24: Board (Seattle) 8/21: Board (Seattle) 9/25: Board (Seattle) 10/23: Board

(Seattle)

11/20: Board

(Seattle)

4/10: PLUS Panel (Chicago) 5/15: Board (Seattle)

4/17: Board (Seattle)

4/9: LWV (Bremerton) 5/7: Community-Minded

(Spokane)

6/19: Board (Seattle) 7/24: Board (Seattle) 8/21: Board (Seattle) 9/25: Board (Seattle) 10/23: Board

(Seattle)

11/20: Board

(Seattle)

4/16: WSMGMA Payer

Forum (Tacoma)

5/8: OIC (Lacey)

4/17: Board (Seattle) 5/15: Board (Seattle)

5/29-30: HEA (Scottsdale,

AZ)

4/9: WA Connection

(Webinar/Olympia)

5/15: Board (Seattle) 6/19: Board (Seattle) 7/24: Board (Seattle) 8/21: Board (Seattle) 9/25: Board (Seattle) 10/23: Board

(Seattle)

11/20: Board

(Seattle)4/17: Board (Seattle)

Pam Cowley 4/9: WA Connection

(Webinar/Olympia)

5/8: Gov Council (Seattle)

4/9: WA Connection

(Webinar/Olympia)

5/4: UW Health Policy

Class (Bellevue)

6/11: St. Peters (Lacey)

5/7: Cap Med Center

(Tumwater)

4/17: Board (Seattle) 5/15: Board (Seattle) 6/19: Board (Seattle) 7/24: Board (Seattle) 8/21: Board (Seattle) 9/25: Board (Seattle) 10/23: Board

(Seattle)

5/21: IPMA Forum (Lacey)

4/17: Board (Seattle) 5/15: Board (Seattle) 6/19: Board (Seattle) 7/24: Board (Seattle) 8/21: Board (Seattle) 9/25: Board (Seattle) 10/23: Board

(Seattle)

11/20: Board

(Seattle)

4/19: WSMOS (Seattle)

4/23–24: RHC Spring Conf.

(Chelan)

4/17: Board (Seattle) 5/15: Board (Seattle) 6/6: TCAHU (Speaker from

SHOP) (Vancouver, WA)

7/9: Sequim Chamber

Luncheon (Sequim)

8/21: Board (Seattle) 9/25: Board (Seattle) 11/20: Board

(Seattle)

Richard

Onizuka

Kelly Boston

Michael

Marchand

Pam

MacEwan

Curt Kwak

Nelly Kinsella

Keith Bell

Updated by Tracie Cleavelin 4/18/2013 1

Washington Health Benefit Exchange Speaking Engagement Calendar

Speaker April 2013 May 2013 June 2013 July 2013 August 2013 September 2013 October 2013 November 20134/19: NAIFA Seminar

(Leavenworth)

5/29: Unity Group

(Bellingham)

6/19: Board (Seattle) 7/24: Board (Seattle) 10/23: Board

(Seattle)

Brandon

Larson

5/21: Spokane Rotary

(Spokane)

Mike Jackling 4/30: Franchise (Olympia)

Scott Hacker 4/30: Franchise (Olympia) Mid-June: 501 Commons

(Seattle)

4/3: Chamber Luncheon

(Kent)

5/3: WASCLA Summit

(Wanatchee)

6/19: Board (Seattle) 7/24: Board (Seattle) 8/21: Board (Seattle) 9/25: Board (Seattle) 10/23: Board

(Seattle)

11/20: Board

(Seattle) 4/17: Board (Seattle) 5/15: Board (Seattle)

5/18-21: Primary Care

Conf (Alaska)

4/17: Acumentra Health

(Olympia)

5/14: AICP (Seattle) 6/19: Board (Seattle) 7/24: Board (Seattle) 8/21: Board (Seattle) 9/25: Board (Seattle) 10/23: Board

(Seattle)

11/20: Board

(Seattle)5/15: Board (Seattle)

Christine

Gibert

5/2: ISCEBS (WAC,

Seattle)

4/17: Board (Seattle) 5/9: Seminar SIG (Seattle)

5/15: Board (Seattle)

4/3: ASRP (Renton)

(Declined - referred to

SHIBA)

6/22: Urology Conference

(Leavenworth) (Declined)

7/24: Desert Insurance

(Moses Lake) (Declined)

9/4: ASD Conference

(Chelan) (Declined)

10/22:

IIABW/PIA

(Seattle)

11/1: ARNP (Need

Speaker Name in

April) (Seattle)

4/11: PhD Operating Board

(Seattle) (Declined)

4/12: WSOA (Yakima)

(Declined)

9/18: WFOA (Tulalip)

(Declined)4/23: NAIFA (Bellingham)

(Declined)

No Speaking

Engagements

Teresa

Mosqueda

Speaker

Needed

Keith Bell

Joan Altman

Brad

Finnegan

Updated by Tracie Cleavelin 4/18/2013 2