Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 2027, S.D. 1, entitled:

begs leave to report as follows:

The purpose of this measure is to create a Medicaid prescription drug rebate special fund that will be used to expand Medicaid prescription drug benefits for certain qualified individuals.

Specifically, the bill provides that all moneys received by the State as Medicaid rebates from drug manufacturers for prescription drugs sold to Medicaid participants shall be deposited into the Medicaid prescription drug rebate special fund and used to expand Medicaid prescription drug benefits. The Department of Human Services is directed to use Medicaid prescription drug rebate special fund revenues to pay $1 for each prescription written in the expanded Medicaid prescription drug program, provided that the Department obtains a waiver to provide drugs at Medicaid rates to persons with incomes no more than three hundred per cent of the federal poverty level.

Your Committee finds that the rising cost of outpatient prescription drugs has a serious impact on individuals who lack prescription drug benefits, particularly seniors and the disabled. Individuals without drug benefits fill their prescriptions less often than those with coverage, placing their health at a serious risk. Many states have a state pharmaceutical assistance program that makes prescription drugs available to a specific target population at more affordable prices. This measure will increase the availability of affordable outpatient prescription drugs in Hawaii for individuals who meet the income requirements.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2027, S.D. 1, and recommends that it pass Third Reading.