Report Title:

Prescription Drugs Purchasing Pools

Description:

Requires the department of human services to enter into prescription drug purchasing alliances with other states and other public and private entities.

THE SENATE

S.B. NO.

2648

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. Chapter 346, Hawaii Revised Statutes, is amended by adding a new section to part XIII be appropriately designated and to read as follows:

"§346-    Prescription drugs purchasing alliances. (a) To the greatest extent possible within budgetary restrictions, the department shall join a regional purchasing pool, purchasing coalition, market consolidator, or similar entity or alliance with other states to purchase prescription drugs specified under subsection (b), for the purpose of increasing the State's market influence, obtaining discounts, and restraining prescription drug price increases. The regional purchasing pool, purchasing coalition, market consolidator, or similar entity or alliance must be one which negotiates discounts from pharmaceutical manufacturers. The discounts shall in turn benefit consumer purchasers of prescription drugs from a pharmacist licensed under chapter 461, or a wholesale prescription drug distributor under section 461-8.6, or both.

(b) For purposes of subsection (a), the drug product selection board under section 328-95 shall establish a formulary that pre-selects specific prescription drugs, including drugs in the compendia of therapeutically equivalent generic drugs under section 328-96.

(c) Discounts under this section shall be applied to the Rx program and to the Medicaid prescription drug expansion program under section 346-59.8."

SECTION 2. Section 328-95, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) The drug product selection board shall be placed, for administrative purposes only, within the department of health. In addition to the duties specified under section 328-96, the drug product selection board shall establish a formulary for purposes of section 346- ; provided that the expenses of the board for this purpose shall be borne by the department of human services."

SECTION 3. There is appropriated out of the general revenues of the State of Hawaii the sum of $          , or so much thereof as may be necessary for fiscal year 2004-2005, for the purchase of prescription drugs through a purchasing pool arrangement pursuant to section 1 of this Act.

The sum appropriated shall be expended by the department of human services.

SECTION 4. New statutory material is underscored.

SECTION 5. This Act shall take effect upon its approval; provided that section 3 shall take effect on July 1, 2004.

INTRODUCED BY:

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