HBX’s decision to replace its initial COTS-based IT platform with a customized, open-source code solution hosted in the cloud has proven successful and has enabled the agency to improve IT operations and services while lowering costs. HBX is saving nearly $1.8 million annually by using cloud hosting and services, in addition to saving $250,000 annually that it would have paid for data-center space to meet the federal 10-year record-keeping standard. Using an agile cloud-based approach and open-source code allows HBX to speed its development cycles and make frequent changes without taking the system down. Finally, using the cloud enables HBX to meet Federal CMS MARS-E 2.0 security standards, an important compliance mandate for all State Exchanges to protect data privacy.

Since deploying the new system, HBX navigated two open-enrollment periods, handled two congressional open seasons, grew enrollment in the SHOP marketplace from 20,000 covered lives to more than 75,000, and deployed a fully functioning, customized version of the platform for another state’s SHOP marketplace. HBX has also deployed best-in-class decision-support tools. Additionally, HBX makes continuous improvements to its solution, with new deployments occurring weekly without the system having to go down. The agency was able to do this while winding down down its federal grant funding and keeping the industry-wide assessment that funds the Authority at the same one-percent level.

Recognizing the IT solution HBX built, another state online-marketplace provider chose HBX to provide its new SHOP IT solution in February 2017. The provider had conducted two private-sector procurements and extensive analysis of the available state partnership options before determining that HBX’s solution surpassed anything offered by the private sector or elsewhere. HBX and the state provider entered into the first state-based marketplace partnership in the nation. HBX deployed the IT solution—with customizations such as rating areas and composite rates—in August 2017 and has provided business support since then. Under this partnership, HBX and the state provider share operational costs for the SHOP solution. This partnership also means HBX and the state provider will share the cost of future improvements and required federal changes.

In June 2016, AWS awarded DC Health Link a Best Practices in Innovation Award. In January 2017, DC Health Link was ranked number one among public marketplaces for its online consumer-decision support tools. Most importantly, its customer satisfaction is up and call volume and escalated cases are down—three metrics considered by HBX to be key success indicators.

The HBX open-source cloud solution is a model with enormous potential payoff for the public sector, because it demonstrates how agencies can align their IT environment with their mission and customer needs by using cloud services, which provide the flexibility to react to ever-changing priorities and are cost-effective to deploy and to maintain.