Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Health and Human Services, to which was referred S.B. No. 1478 entitled:

begs leave to report as follows:

The purpose of this measure, as received, is to cap the QUEST reimbursement rate for prescription drugs at the level of generic drugs, where available.

Testimony in opposition to this measure was submitted by the Department of Human Services and the Hawaii Pharmacists Association.

Your Committee finds that QUEST and Medicaid programs cause financial hardship to both the participants and the providers of the services. Your Committee did not find support for this measure as received, however, your Committee wishes to pass out a measure that would assist in some of the problems that exist in the QUEST and Medicaid programs. Your Committee has amended this measure by replacing the entire contents with language to increase the reimbursement to providers, including hospitals, up to 75% of usual, customary, and reasonable fees for QUEST and Medicaid patients.

As affirmed by the record of votes of the members of your Committee on Health and Human Services that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1478, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1478, S.D. 1, and be referred to the Committee on Ways and Means.