Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committees on Health and Human Services and Commerce, Consumer Protection and Housing, to which was referred H.B. No. 47, H.D. 2, entitled:

beg leave to report as follows:

The purpose of this measure is to establish a Hawaii Rx Program to make prescription drugs more affordable by combining the purchasing power of persons to reduce prescription drug costs. This measure also makes appropriations to fund the implementation of this program.

Your Committees received testimony in favor of this measure from the State Health Planning and Development Agency, Hawaii State Primary Care Association, Executive Office on Aging, Board of Pharmacy, Mental Health Association in Hawaii, ILWU, Policy Advisory Board for Elder Affairs, Hawaii Catholic Conference, Hawaii State AFL-CIO, and one individual. Opposing testimony was received from the Hawaii Pharmacists Association.

Your Committees find that the high cost of prescription drugs is of great concern to all persons regardless of their age or current insurance coverage. The high cost of prescription drugs burdens persons without adequate insurance coverage and inflates the prices of medical care in general. The quality of life of individuals is being compromised causing unreasonable hardship on the people of Hawaii. Your Committees find that this measure creates a program that allows all persons wishing to participate to pool resources in order to purchase prescription drugs at a more reasonable price. As a result, people will no longer need to sacrifice their quality of life in order to obtain the medical care they need.

Your Committees have amended this measure by establishing the Hawaii RX program in the office of the governor and changing the effective date to July 1, 2050. Your Committees acknowledge that there are still concerns regarding the implementation of the Hawaii RX program. Therefore, this measure is being passed with the understanding that further discussion on this matter will continue. To be discussed in the next committee, is the possibility of replacing the contents of this measure, as amended, with provisions establishing a committee to study the Hawaii RX program and develop legislation for submission to the Regular Session of 2002.

As affirmed by the records of votes of the members of your Committees on Health and Human Services and Commerce, Consumer Protection and Housing that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 47, H.D. 2, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 47, H.D. 2, S.D. 1, and be referred to the Committee on Ways and Means.