STAND. COM. REP. 3160

Honolulu, Hawaii

, 2004

RE: S.C.R. No. 56

 

 

Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committees on Commerce, Consumer Protection and Housing and Health and Transportation, Military Affairs, and Government Operations, to which was referred S.C.R. No. 56 entitled:

"SENATE CONCURRENT RESOLUTION URGING THE PRESIDENT AND CONGRESS TO REPEAL THE BAN AGAINST THE GOVERNMENT NEGOTIATING PRICE REDUCTIONS OF PRESCRIPTION DRUGS,"

beg leave to report as follows:

The purpose of this measure is to urge the President of the United States and Congress to repeal the ban prohibiting the federal government from negotiating prescription drug prices with pharmaceutical companies.

The Hawaii Government Employees Association, Hawaii Alliance for Retired Americans, Policy Advisory Board for Elder Affairs, and The League of Women Voters of Hawaii testified in support of this measure.

The Medicare Prescription Drug, Improvement, and Modernization Act of 2003 contains a "noninterference" clause that prohibits the Secretary of Health and Human Services from interfering with negotiations between drug manufacturers and pharmacies and prescription drug plan sponsors, and from instituting a price structure for the reimbursement of covered part D drugs.

Your Committees find that this prohibition precludes the federal government from taking advantage of the purchasing power of millions of Medicare beneficiaries to obtain drugs at discounted prices. Therefore, this measure exhorts the President and Congress to repeal the prohibition. Your Committees further find that authorizing the federal government to negotiate reduced prices for prescription drugs will help to produce savings for both the Medicare program and taxpayers.

As affirmed by the records of votes of the members of your Committees on Commerce, Consumer Protection and Housing and Health and Transportation, Military Affairs, and Government Operations that are attached to this report, your Committees concur with the intent and purpose of S.C.R. No. 56 and recommend its adoption.

Respectfully submitted on behalf of the members of the Committees on Commerce, Consumer Protection and Housing and Health and Transportation, Military Affairs, and Government Operations,

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ROSALYN H. BAKER, Chair

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RON MENOR, Chair

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CAL KAWAMOTO, Chair