Report Title:

Prescription Drugs; Website; Reimportation

Description:

Directs the governor, in consultation with department of human services, the department of health, and others, to develop, operate, and maintain a website to assist Hawaii residents in purchasing prescription drugs from Canada.

HOUSE OF REPRESENTATIVES

H.B. NO.

1921

TWENTY-SECOND LEGISLATURE, 2004

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

relating to prescription drugs.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. The legislature finds that there is growing momentum to allow individuals, as well as state and local governments, to lower health care costs by purchasing prescription drugs from Canada. A number of mayors and governors in other jurisdictions are taking steps to enable their public employees and retirees to access prescription drugs at the lower prices offered in Canada. The mayor of Springfield, Massachusetts has established a voluntary Canadian drug-purchasing program that has approximately two thousand city worker and retiree participants. The program has saved the city of Springfield $600,000. A recent ABC News-Washington Post poll indicated that seventy per cent of Americans favor access to prescription drugs from Canada and other countries.

An extensive "Report on Feasibility of Employees and Retirees Safely and Effectively Purchasing Prescription Drugs From Canadian Pharmacies" recently submitted to Illinois Governor Rod Blagojevich concluded that Illinois state employees and retirees could obtain safe and effective prescription drugs at lower prices from Canadian pharmacies. The report's key findings establish that:

    1. Illinos state employees and retirees can safely purchase drugs from Canada;
    2. Canadian pharmacy practices are equal or superior to Illinois pharmacy practices;
    3. (A) Drugs are primarily dispensed in Canada in "unit of use" sealed packages and shipped directly from the manufacturer, thus drastically reducing change of medication errors and counterfeiting;

      (B) Regulatory systems provide substantially the same protection for health and safety in Canada and Illinois;

      (C) Canada and United States have comparable methods to ensure the safety and efficacy of prescription drugs;

      (D) Canadian drug pricing and distribution is less likely to encourage drug counterfeiting;

      (E) United States and Canada pharmaceutical warehousing and storage requirements are comparable at all levels;

      (F) Canadian pharmacists are subject to requirements and regulation as rigorous as Illinois pharmacists;

      (G) Canadian drug manufacturing, storage, distribution, and dispensing requirements are substantially equivalent to federal regulations; and

      (H) Illinois pharmacists observed stricter internal process error reporting by pharmacists in Canada; and;

    4. Any potential negative impact on Illinois retail pharmacies can be minimized and patient safety enhanced by implementing a primary care pharmacist model.

As a result of these findings, in December 2003, Illinois Governor Blagojevich announced his plans to submit a formal request to federal authorities to launch a prescription drug importation demonstration project. Approval has not been granted at this time.

Other states and counties also are exploring various approaches to drug re-importation. One low-cost, relatively simple approach is being implemented in Minnesota and Rhode Island. These states are developing a state website to enable their residents to purchase their personal-use medications from Canada. In October 2003, Minnesota Governor Pawlenty announced a number of initiatives relating to prescription drug importation, including the establishment of a website to enable all residents to buy mail-order prescription drugs from approved Canadian pharmacies and providing incentives for state employees to purchase their drugs through the new online service.

The purpose of this Act is to direct the governor, in consultation with the department of health, department of human services, and other stakeholders, to convene a working group to establish a website that enables Hawaii residents to lower their health care costs by purchasing personal-use prescription drugs from approved Canadian pharmacies.

SECTION 2. (a) The governor, in consultation with the department of health and the department of human services and other stakeholders, is directed to convene a working group to create a website that lists Canadian pharmacies that meet the State's safety requirements to assist Hawaii residents who wish to buy prescription drugs on the Internet for their personal use at Canada's lower prices. The governor shall direct state officials to negotiate prices at which approved pharmacies will sell prescription drugs to Hawaii residents, as well as what medications shall be available through the website.

(b) The department of human services, with assistance from other state agencies, shall develop a request for proposal and make the document available to all interested Canadian pharmacies to assist in the identification of Canadian pharmacies to be affiliated with the State's website. Only pharmacies licensed by Canadian officials that: are subject to requirements that are as stringent as those required for pharmacies in Hawaii; can provide certain low-cost prescription drugs; and satisfy all safety requirements shall be eligible to participate. Any additional safety standards deemed desirable for participating pharmacies shall be established by the working group.

(c) The working group shall discuss with interested Canadian pharmacies the top concerns of prescription drug safety, delivery logistics, and costs. Among the issues the working group shall consider are:

(1) Product availability;

(2) Maximum order quantity;

(3) Ordering, reordering, and order confirmation procedure;

(4) Insurance claims;

(5) Payment procedures for an order, including shipping costs and times;

(6) Cancellation and return policy; and

(7) Public awareness campaign to educate Hawaii residents about the existence and use of the website.

(d) The working group shall also develop, either on the website created to enable residents to purchase prescription drugs from Canadian pharmacies or on the website of an appropriate state agency, a website where consumers can complete and submit an online petition supporting options for reimporting prescription drugs. The petition shall urge Congress and the United States Food and Drug Administration to allow purchase of prescription drugs from Canada.

(e) The working group shall work to ensure that the website will be in operation no later than May 1, 2005.

(f) The working group shall submit a report of its findings and recommendations, including the status of the development, implementation, and operation of the website program, to the legislature no later than twenty days prior to the regular session of 2005.

(g) The working group shall be terminated six months after the website is operational.

SECTION 3. This Act shall take effect upon its approval.

INTRODUCED BY:

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