Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committees on Health and Human Services and Commerce, Consumer Protection and Housing, to which was referred H.B. No. 1950 entitled:

beg leave to report as follows:

The purpose of this measure is to appropriate funds to the Department of Human Services to establish a Medicaid waiver program that would pay $1 on prescriptions written for qualified individuals.

Testimony in support of this measure was submitted by the Hawaii State Teachers Association, Hawaii Government Employees Association Retirees Unit, Hawaii State AFL-CIO, Legal Aid Society of Hawaii, Healthcare Association of Hawaii, AARP Hawaii, Hawai'i State Council of Senior Citizens, Policy Advisory Board for Elder Affairs, NAMI Oahu, and The Medicine Bank. The Department of Health, the State Insurance Commissioner, and the Executive Office on Aging supported the intent of this measure. The Department of Human Services and Longs Drugs submitted testimony in support of the intent of the measure with proposed amendments. Testimony in opposition to this measure was submitted by the Hawaii Medical Association.

Your Committees find that the cost of prescription drugs continues to escalate, creating a larger gap between those individuals who have adequate insurance coverage to afford them and those, particularly elderly and disabled individuals, who are forced to spend a disproportionate share of their incomes on prescription drugs. Your Committees further find that while many pharmaceutical companies voluntarily offer low- or no-cost drugs for target groups, these programs offer no long-term solution because they are discretionary, are limited to certain drugs, or allow reimbursement only after full price is paid for the drug. Your Committees note that 29 other states have established some type of state pharmaceutical assistance program, choosing not to wait for federal action to add drug benefits to the Medicare program. Your Committees were informed that the fiscal impact of establishing this Medicaid waiver program in Hawaii is approximately $1,000,000 and agree that it is necessary and appropriate at this time to assist those on fixed and low-incomes.

Upon further consideration, your Committees have amended this measure by adopting the amendments offered by the Department of Human Services as follows:

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. 1950, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 1950, S.D. 1, and be referred to the Committee on Ways and Means.