THE SENATE

S.R. NO.

81

TWENTY-SECOND LEGISLATURE, 2004

 

STATE OF HAWAII

 
   


SENATE RESOLUTION

 

RENAMING the HAWAII Rx prescription drug program to the takumi-menor affordable prescription drug program in recognition of their efforts to provide affordable prescription drugs to hawaii consumers.

 

 

WHEREAS, the high cost of prescription drugs and the resulting challenges faced by people of all ages is an important issue not only to the people of Hawaii, but also to people across the United States; and

WHEREAS, a new report issued by the American Association of Retired Persons Hawaii, Lowering the Cost of Prescription Drugs in Hawaii: A 2003 Survey of Residents Age 18+, found that half of all people surveyed, particularly those age fifty and older and those with lower incomes, are concerned about being able to afford prescription drugs during the next two years; and

WHEREAS, the recent AARP Hawaii report is the first survey to examine prescription drug cost and affordability issues and their impact on Hawaii consumers; and

WHEREAS, the strong numbers in the AARP Hawaii report are a powerful message to policy makers that it is time to stand up to the multi-national drug companies and their well-heeled lobbyists and implement meaningful prescription drug reform in Hawaii; and

WHEREAS, for the past ten years, the drug industry has been the most profitable industry in America and in 2001, was five-and-one-half times more profitable than the average Fortune 500 company; and

WHEREAS, top pharmaceutical company executives receive millions of dollars in annual pay, supplemented by even larger company stock options; the ten most highly compensated executives received compensation totaling $52,000,000 in 2001; and

WHEREAS, major pharmaceutical companies typically spend twice as much on marketing, advertising, and administration than they spend on research and development; and

WHEREAS, during the 1990s, prescription drug prices increased 2.5 times faster than the rate of inflation; and

WHEREAS, drug prices continue to skyrocket and there is no end in sight to this trend; and

WHEREAS, consumers should not have to tolerate excessive prices from the most profitable industry in America; and

WHEREAS, in an effort to provide relief from the high cost of prescription drugs in Hawaii, during the 2002 legislative session, Representative Roy Takumi (D-36th Pearl City and Palisades) and Senator Ron Menor (D-17th Mililani, Waipio) introduced successful legislation that established Hawaii's Rx program, popularly known as "Hawaii Rx", a prescription drug program based on the innovative Maine Rx Plus program; Hawaii's Rx program, however, is not yet operational; and

WHEREAS, in a continuation of their efforts to reduce the cost of prescription drugs, Senator Menor and Representative Takumi traveled to Maine in September 2003, meeting with Maine Governor John Baldacci, Attorney General G. Steven Rowe, and other state officials and citizen groups, to study the latest developments in the Maine Rx Plus program; and

WHEREAS, once operational, Hawaii's Rx program will help reduce the cost of prescription drugs -- not just for seniors, but for all Hawaii residents; it will provide relief to the consumers who pay the highest prices for prescriptions today -- the approximately three hundred thousand residents who have no prescription drug coverage; and

WHEREAS, these three hundred thousand people with no prescription drug benefits may be: uninsured; employed in multiple part-time jobs and thus not qualify for health benefits; working for small business employers that do not offer a prescription drug benefit; self-employed and unable to afford prescription drug coverage; or on Medicare, which does not provide prescription drug assistance until 2006; and

WHEREAS, additionally, a number of individuals who have health insurance may be underinsured, having drug coverage insufficient for their health requirements; seniors fortunate enough to have drug coverage are often limited by annual caps of $1,500 or less. Many consumers who have underinsured plans reach their coverage limit before the year is over and are then forced to pay the full retail price for their prescription drugs; and

WHEREAS, Hawaii's Rx program challenges the drug companies to put people before profits so that no one is forced to make a decision between putting food on the table or paying for medication; and

WHEREAS, people who suffer from diabetes, high cholesterol, high blood pressure, and asthma can live healthy and productive lives if they have access to the prescription drugs they need at the affordable prices that Hawaii's Rx program will offer; now, therefore,

BE IT RESOLVED by the Senate of the Twenty-second Legislature of the State of Hawaii, Regular Session of 2004, that the name of Hawaii's Rx prescription drug program is changed to the "Takumi-Menor Affordable Prescription Drug Program" in recognition of the efforts of Representative Takumi and Senator Menor to provide affordable prescription drugs to Hawaii consumers; and

BE IT FURTHER RESOLVED that certified copies of this Resolution be transmitted to the Governor, the Director of Human Services, the President of the Senate, the Speaker of the House of Representatives, Senator Ron Menor, and Representative Roy Takumi.

 

 

 

OFFERED BY:

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Report Title:

Hawaii Rx Program; Name Change