Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committees on Commerce, Consumer Protection and Housing and Human Services, to which was referred H.B. No. 1361, H.D. 2, entitled:

beg leave to report as follows:

The purpose of this measure is to (1) expand the Medicaid prescription drug expansion program (program) to include any maximum income limit set by the federal government; (2) to allow pharmacies, rather than pharmacists, to be paid by the program; and (3) sunset Act 75, Session Laws of Hawaii 2002 (Act 75), on July 1, 2006.

Your Committees received testimony in support of this measure from the Department of Human Services (DHS), Policy Advisory Board for Elder Affairs, ILWU Local 142, and AARP Hawaii.

Your Committee finds that Act 75 provides for discounted prescription drug coverage for individuals with incomes at or below three hundred per cent of the federal poverty level. However, the Centers for Medicare and Medicaid Services (Centers) currently may limit Medicaid expansions to those with incomes up to two hundred per cent of the federal poverty level. This measure allows the DHS flexibility in dealing with the Centers' requirements to obtain federal approval of Hawaii's application for a Medicaid prescription drug expansion program as established by Act 75.

This measure also clarifies that a participating pharmacy instead of a participating pharmacist is to be paid the one dollar rebate for each prescription written under the program. The pharmacy and not the pharmacist is technically the Medicaid provider.

As affirmed by the records of votes of the members of your Committees on Commerce, Consumer Protection and Housing and Human Services that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 1361, H.D. 2, and recommend that it pass Second Reading and be referred to the Committee on Ways and Means.