STAND. COM. REP. NO. 2808

 

Honolulu, Hawaii

                  

 

RE:    H.B. No. 2461

       H.D. 2

       S.D. 1

 

 

 

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fifth State Legislature

Regular Session of 2010

State of Hawaii

 

Madam:

 

     Your Committees on Labor and Human Services and Health, to which was referred H.B. No. 2461, H.D. 2, entitled:

 

"A BILL FOR AN ACT RELATING TO INSURANCE,"

 

beg leave to report as follows:

 

     The purpose of this measure is to:

 

     (1)  Require Hawaii Employer-Union Health Benefits Trust Fund plans to allow enrollees to continue the same prescription drug coverage for current enrollees and retroactively to the 2009 Hawaii Employer-Union Health Benefits Trust Fund open enrollment period; and

 

     (2)  Prohibit the Department of Human Services from requiring its approval for a Medicaid or QUEST health plan to deliver services through telehealth, and from requiring in-person health care visits to qualify telehealth services for coverage under the Medicaid and QUEST health plans.

 

     Testimony in support of this measure was submitted by four private organizations.  Testimony in opposition of this measure was submitted by two state agencies and four private organizations.  Comments on this measure were submitted by two private organizations and one individual.  Written testimony presented to the Committees may be reviewed on the Legislature's website.

 

     Your Committees find that utilization of reference-based pricing programs, the practice of utilizing a reimbursement process in which a ceiling price is set for medications that exhibit similar therapeutic benefits, is still in its infancy and the long-term costs and benefits associated with using the programs are yet to be accurately determined.  Your Committees also find that the impact of reference-based pricing programs on health plan members needs to be closely examined and analyzed in order to make an informed decision about what health care alternatives provide the best value for Hawaii Employer-Union Health Benefits Trust Fund members enrolled in its Prescription Plan.  Your Committees further find that use of new and available health care technology and alternatives that would meet the health care needs of patients should be explored, which includes the use of mobile health vans equipped with telecommunication services.

 

     Your Committees have amended this measure by:

 

     (1)  Deleting its contents;

 

     (2)  Adding a purpose section that provides background on reference-based pricing programs;

 

     (3)  Requiring a moratorium on the use of the Hawaii Employer-Union Health Benefits Trust Fund's Reference-Based Pricing Program in this State through June 30, 2012;

 

     (4)  Requiring the Hawaii Employer-Union Health Benefits Trust Fund to conduct a comprehensive study on the feasibility and long-term effects of the Reference-Based Pricing Program and to submit a report of their findings to the Legislature no later than twenty days prior to the convening of the 2012 Regular Session;

 

     (5)  Requiring the Department of Health to execute a budget neutral pilot program to explore the use of mobile health vans that are equipped with telecommunication services that utilize managed health care principles; and

 

     (6)  Adding the contents of S.B. No. 2494, S.D. 2, to Part III, to provide for continuing coverage of prescription medication under any policy entered into by an insured or insurer on or after July 1, 2010.

 

     As affirmed by the records of votes of the members of your Committees on Labor and Human Services and Health that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 2461, H.D. 2, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 2461, H.D. 2, S.D. 1, and be referred to the Committee on Ways and Means.

 

Respectfully submitted on behalf of the members of the Committees on Labor and Human Services and Health,

 

____________________________

SUZANNE CHUN OAKLAND, Chair

 

____________________________

DWIGHT Y. TAKAMINE, Chair

 

 

____________________________

DAVID Y. IGE, Chair