Report Title: Mandated Benefit Advisory Taskforce; Pharmaceutical Assistance Program Study.

RESOLUTION

WHEREAS, across the nation, the cost of health insurance coverage has been constantly rising; and

WHEREAS, each year, the Legislature introduces health insurance mandated benefits and regulations, and expands the eligible provider list, thus further increasing the cost of health care in our islands; and

WHEREAS, many of these mandated benefits are passed without knowing the social or financial implications or needs; and

WHEREAS, although the Auditor is required to report on financial implications, this report does not gather input from others in the health care industry such as providers or payers of these benefits---the business community; and

WHEREAS, prescription drugs are an increasingly significant component in modern health care as new medications improve health outcomes and quality of life, replace surgery and other invasive treatments, quicken recovery for patients who receive these treatments, and prevent serious and costly hospitalization; and

WHEREAS, prescription drug prices are rising twice as fast as inflation, with annual percent increases in prescription expenditures surpassing most other aspects of personal health care expenditures in the past decade; and

WHEREAS, individuals without drug coverage pay a higher price at the retail pharmacy than the total price paid on behalf of those with drug coverage, thereby forcing those most in need to face the highest prices; and

WHEREAS, one in four Americans (70 million citizens) do not have drug coverage; and

WHEREAS, the percentage of Hawaii residents lacking even the most basic health insurance has been steadily growing in recent years, from 7 percent in 1996 to 11 percent in 1999; and

WHEREAS, a study by Boston University School of Public Health researchers estimate that 19 percent of Hawaii’s population (228,000 residents) do not have drug coverage, and given that employers are required to provide health insurance but not drug coverage, the percentage of residents without drug coverage may be even higher; and

WHEREAS, one in three Medicare recipients do not have drug coverage; and

WHEREAS, Hawaii’s elderly population has been growing (13.2 per cent of total population in 1997) and is expected to increase dramatically in the near future with the first baby boomers turning 65 years old in 2011; and

WHEREAS, seniors consume one-third of all prescription drugs, averaging ten prescriptions prescribed per year versus three per year for those under 65, and often live on fixed incomes, yet have minimal drug coverage; and

WHEREAS, an April 2000 study by the U.S. Department of Health and Human Services found that fewer employers offer health benefits to future retirees, making declines in drug coverage more likely; and

WHEREAS, rebates are such a common practice that most, if not all, third-party insurers secure rebates from pharmaceutical manufacturers to bring discounted prices to their members; and

WHEREAS, 26 states have enacted varying forms of state pharmaceutical assistance programs for uninsured residents; and

WHEREAS, four states have established programs to pool together the uninsured and negotiate discounted prices through manufacturer rebates on their behalf; now, therefore,

BE IT RESOLVED by the House of Representatives of the Twenty-first Legislature of the State of Hawaii, Regular Session of 2001, the Senate concurring, that the Insurance Commissioner is requested to establish a mandated benefit advisory task force (task force); and

BE IT FURTHER RESOLVED that the Insurance Commissioner appoint the members, which shall include but not be limited to representatives for licensed registered nurses, licensed physicians, alternate complementary care service providers, professional medical associations, health plans, consumer advocate groups, and members of the business community; and

BE IT FURTHER RESOLVED that the task force advise the 2002 Legislature on the problems surrounding Hawaii's mandated benefits and the legislative process enacting them; and

BE IT FURTHER RESOLVED that the task force recommend legislation on the mandated benefit process as well as recommend legislation for the establishment of a permanent advisory panel to review mandated benefits; and

BE IT FURTHER RESOLVED that the taskforce report its findings to the Legislature no later that twenty days prior to the convening of the Regular Session of 2002; and

BE IT FURTHER RESOLVED that the Legislative Reference Bureau is requested to:

and

BE IT FURTHER RESOLVED that the Legislative Reference Bureau study the feasibility of a state pharmaceutical assistance program and assist the advisory panel in reviewing health care regulations; and

BE IT FURTHER RESOLVED that the Legislative Reference Bureau report its findings to the Legislature no later that twenty days prior to the convening of the Regular Session of 2002; and

BE IT FURTHER RESOLVED that certified copies of this Concurrent Resolution be transmitted to the Director of Health, the Insurance Commissioner, and the Acting Director of the Legislative Reference Bureau.