STAND. COM. REP. NO.176

Honolulu, Hawaii

, 2001

RE: H.B. No. 411

H.D. 1

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committees on Health and Human Services and Housing, to which was referred H.B. No. 411 entitled:

"A BILL FOR AN ACT RELATING TO PRESCRIPTION DRUGS,"

beg leave to report as follows:

The purpose of this bill is to restrict the prices of prescription medications to individuals without health insurance to be consistent with the prices in the federal medical supply schedule.

Testimony in support of this measure was received from the Hawaii Primary Care Association and the Policy Advisory Board for Elder Affairs.

The Executive Office on Aging submitted testimony in support of the intent of this measure but did have some concerns on whether the bill was constitutional or posed a threat to free trade or consumer protection.

The Department of Human Services opposed the measure because it would require the implementation of a new program and result in increased costs to the State.

Opposition to the measure was also received from the Pharmaceutical Research and Manufacturers of America and the Hawaii Pharmacists Association. Their concern was that the bill appeared to fix prices for medicines. Furthermore, it was felt that private pharmacists, who purchase medicines at a base rate, would be put at an unfair advantage with regards to government agencies who receive their pharmaceuticals at the lower, federally mandated rate.

Your Committees recognize that in this modern age, a vast array of medications is available for the treatment of numerous ailments. Unfortunately, many of these medications may not be available to people in Hawaii due to a lack of medical insurance and the inability to pay for these medications out of pocket. Moreover, your Committees find that oftentimes these people go without necessary medications and are more likely to visit an emergency room for medical treatment.

Your Committees, understanding the need for such a program and the concerns of the pharmacists and pharmaceutical companies, have decided to amend this measure by:

(1) Providing tax credits to pharmacists and pharmaceutical companies who donate pharmaceuticals and health care supplies to be utilized by needy persons; and

(2) Extending the Good Samaritan Law to pharmacists who provided pharmaceuticals and health care supplies to needy persons.

Your Committees also note that this benefits the Medicine Bank of Hawaii who provides medical supplies and pharmaceuticals to indigent persons.

As affirmed by the records of votes of the members of your Committees on Health and Human Services and Housing that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 411, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 411, H.D. 1, and be referred to the Committee on Consumer Protection and Commerce.

Respectfully submitted on behalf of the members of the Committees on Health and Human Services and Housing,

____________________________

MICHAEL P. KAHIKINA, Chair

____________________________

DENNIS A. ARAKAKI, Chair