S.R. NO.








urging the president and congress to repeal the ban against the government negotiating PRICE reductionS of prescription drugs.


WHEREAS, the Medicare Drug Benefit law recently enacted by Congress and signed into law by the President prohibits the government from negotiating prescription drug prices with the manufacturers; and

WHEREAS, the pharmaceutical companies have been negotiating with other governments such as Canada and Mexico, offering citizens of those countries substantial discounts on prescription drugs, while still generating profits from the discounted prices; and

WHEREAS, news articles have documented that many Americans travel to Canada to purchase their prescription drugs; and

WHEREAS, there is a growing momentum to allow individuals, as well as state and local governments, to lower health care costs by purchasing prescription drugs from Canada; and

WHEREAS, allowing the American government to negotiate prescription drug prices would reduce their costs, as since our purchasing power covers approximately 270 million Americans, which is the largest economy in the world, our government can negotiate lower prices than Canada and other countries and pass on the savings to our citizens; and

WHEREAS, all Americans will be the beneficiaries of discounted prescription drugs, especially those who need prescription drugs for serious health conditions, all group prescription drug programs provided by employers and union agreements, and the state and federal programs that provide prescription drugs to veterans, Medicaid recipients, and others who qualify for government supported programs; and

WHEREAS, substantial savings can used for other healthcare needs or expenses and reducing co-payments; and

WHEREAS, every other developed country has the power to negotiate the costs of prescription drugs; now, therefore,

BE IT RESOLVED by the Senate of the Twenty-Second Legislature of the State of Hawaii, Regular Session of 2004, that the President and Congress are urged to repeal the restriction on government to negotiate reductions in prescription drug prices with manufacturers; and

BE IT FURTHER RESOLVED that certified copies of this Resolution be transmitted to the President of the United States, the Speaker of the House of Representatives of the United States, the President of the Senate of the United States, and the members of Hawaii's Congressional delegation.






Report Title:

Repeal ban on negotiating the costs of prescription drugs.