STAND. COM. REP. NO. 46-04

Honolulu, Hawaii

, 2004

RE: H.B. No. 2005

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committees on Health and Consumer Protection and Commerce, to which was referred H.B. No. 2005 entitled:

"A BILL FOR AN ACT RELATING TO PRESCRIPTION DRUGS,"

beg leave to report as follows:

The purpose of this bill is to make improvements to the Rx Program by:

(1) Adding several new definitions;

(2) Changing the name of the program to Rx Plus Program;

(3) Requiring the Department of Human Services (DHS) to conduct ongoing quality assurance activities similar to those used in the state Medicaid program;

(4) Clarifying the rebate provisions;

(5) Removing the requirement that nonparticipating drug manufacturers be placed on the Medicaid prior authorization list;

(6) Limiting the Rx Plus Program to:

(A) Individuals whose income is 350 percent or less of the federal poverty level; and

(B) Individuals whose family incurs a specified level of unreimbursed prescription drug expenses;

and

(7) Making other clarifying amendments.

The Department of Human Services (DHS), Hawaii State Commission on the Status of Women, AARP Hawaii, Hawaii Alliance for Retired Americans, ILWU Local 142, Hawaii State AFL-CIO, Hawaii State Teachers Association, Kokua Council, Policy Advisory Board for Elder Affairs, Hawaii State Teachers Association – Retired, Faith Action for Community Equity, and several concerned individuals testified in support of this measure. The Department of Health supported the intent of this measure.

PhRMA testified in opposition to this measure.

Your Committees find that changes to the Rx Program are necessary to increase its effectiveness. Your Committees note that several concerns were brought up during the public hearing:

(1) DHS made several recommendations including:

(a) Requiring affected organizations to provide prescription drug utilization data to DHS;

(b) Prohibiting a contracted administrator from receiving compensation or benefits from participating manufacturers;

(c) Prohibiting the charging of transaction fees to pharmacies;

(d) Appropriating $400,000 to develop and begin implementation of the Rx Plus Program by July 1, 2004; and

(e) Making other clarifying and conforming amendments;

and

(2) Several testifiers brought up a concern that employers may drop prescription drug coverage for employees who qualify under the Rx Plus Program and that the Rx Plus Program was not intended to be a replacement for employer-provided prescription drug coverage.

As affirmed by the records of votes of the members of your Committees on Health and Consumer Protection and Commerce that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 2005 and recommend that it pass Second Reading and be referred to the Committee on Finance.

Respectfully submitted on behalf of the members of the Committees on Health and Consumer Protection and Commerce,

 

____________________________

KENNETH T. HIRAKI, Chair

____________________________

DENNIS A. ARAKAKI, Chair