STAND. COM. REP. NO.755
Honolulu, Hawaii
, 2001
RE: H.B. No. 47
H.D. 2
Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twenty-First State Legislature
Regular Session of 2001
State of Hawaii
Sir:
Your Committee on Finance, to which was referred H.B. No. 47, H.D. 1, entitled:
"A BILL FOR AN ACT RELATING TO PRESCRIPTION DRUGS,"
begs leave to report as follows:
The purpose of this bill is to reduce the cost of prescription drugs for persons without drug coverage under health insurance plans or public programs. This bill establishes a Prescription Drug Access Program (Program) administered by the State Health Planning and Development Agency (SHPDA), with advice from the newly created Prescription Drug Advisory Commission composed of consumers, pharmacists, and representatives of government agencies.
The Hawaii State AFL-CIO, Hawaii Catholic Conference, Hawaii State Primary Care Association, American Friends Service Committee, and Policy Advisory Board for Elder Affairs submitted testimony in support of this bill. SHPDA and the Executive Office on Aging submitted testimony in support of the intent of this bill. The Hawaii Pharmacists Association and the Board of Pharmacy commented on this bill.
Your Committee has amended this bill by:
(1) Changing the name of the Program to the Hawaii Rx Program;
(2) Making all residents of the State eligible for the Program;
(3) Allowing any prescription drug manufacturers or labelers that sell prescription drugs in the State to enter into the rebate program established under the Program;
(4) Requiring manufacturers and labelers who enter into rebate agreements with the State to make rebate payments to the State each calendar quarter or pursuant to a schedule established by SHPDA;
(5) Requiring SHPDA, when unable to reach agreement with a drug manufacturer or labeler on the terms of a rebate, to prompt a review of whether to place that manufacturer's or labeler's products on the prior authorization or formularies for any other state-funded prescription drug program in accordance with chapter 328, Hawaii Revised Statutes, and take similar actions involving prior authorization or formularies for any other state-funded drug program;
(6) Requiring SHPDA to adopt rules to implement the preceding requirements;
(7) Allowing SHPDA to publicize to doctors, pharmacists, and other health professionals, information about the relative costs of drugs produced by those who enter rebate agreements under the Program compared to those who do not enter rebate agreements;
(8) Requiring participating retail pharmacies, beginning July 1, 2001, to offer prescription drugs at or below the average wholesale price, minus six percent, plus a dispensing fee designated by SHPDA;
(9) Requiring that no later than January 1, 2002, participating retail pharmacies offer prescription drugs at the required prices minus the amount of any rebate received from the State; and
(10) Making technical, nonsubstantive changes for purposes of style and clarity.
As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 47, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 47, H.D. 2.
Respectfully submitted on behalf of the members of the Committee on Finance,
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____________________________ DWIGHT Y. TAKAMINE, Chair |
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