Report Title:

Pharmaceutical Benefits Service Corporations and Organizations

Description:

Authorizes the formation of pharmaceutical benefits service corporations and organizations.

THE SENATE

S.B. NO.

2245

TWENTY-SECOND LEGISLATURE, 2004

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

relating to pharmacy.

 

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

SECTION 1. This Act authorizes the establishment of pharmaceutical benefits service organizations and corporations. The legislature finds that the utilization of pharmaceutical benefits service organizations to provide drug coverage for employees will enable employers to isolate employee health care costs attributable to prescription drugs and to exercise greater control over their health insurance expenses. Additionally, it will insulate medical, vision, and dental coverage from premium increases due to high use of prescription drugs.

SECTION 2. The Hawaii Revised Statutes is amended by adding a new chapter to be appropriately designated and to read as follows:

"Chapter

pharmaceutical benefits service corporations

   -1 Pharmaceutical benefits service corporation; formation. A nonprofit pharmaceutical benefits service corporation may be formed for the purposes of contracting with individuals and corporations, both public and private, for defraying or assuming the costs of services of pharmacists and pharmaceutical products, and contracting on behalf of pharmacists to furnish such services and products. The director of commerce and consumer affairs shall grant to applicants who file articles of incorporation in conformity with section 414D-32 a charter of incorporation for the establishment and conduct of a pharmaceutical benefits service corporation. Any charter granted or corporation created under authority of this section shall be subject to all general laws enacted in regard to nonprofit corporations."

SECTION 3. The Hawaii Revised Statutes is amended by adding a new chapter to be appropriately designated and to read as follows:

"Chapter    

pharmaceutical BENEFITS service organizations

   -1 Definitions. As used in this chapter, unless the context otherwise requires:

"Pharmaceutical benefits service organization" means any person who undertakes to provide or to arrange for or administer one or more prepaid pharmaceutical benefits insurance plans.

"Prepaid pharmaceutical benefits insurance" means any contractual arrangement for pharmaceutical services and products provided directly or arranged for or administered directly on a prepaid individual, group, or capitation basis.

"Subscriber" means a member of the public or group who has contracted with a pharmaceutical benefits service organization for the provision of pharmaceutical services and products, including dependents who are entitled to pharmaceutical services and products under the plan solely because of their status as dependents of the subscriber.

   -2 Registration required. All pharmaceutical benefits service organizations offering prepaid pharmaceutical benefits insurance shall file with the director of commerce and consumer affairs an application for registration on a form prescribed by the director, and provide copies to the department of commerce and consumer affairs of all materials given to subscribers."

SECTION 4. This Act shall take effect upon its approval.

INTRODUCED BY:

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