STAND

STAND. COM. REP. NO.1322

Honolulu, Hawaii

, 2003

RE: H.B. No. 1361

H.D. 2

S.D. 1

Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred H.B. No. 1361, H.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO THE MEDICAID PRESCRIPTION DRUG EXPANSION PROGRAM,"

begs leave to report as follows:

The purpose of this measure is to ensure federal approval and funding of the medicaid prescription drug expansion program established in Act 75, Session Laws of Hawaii 2002, by allowing income eligibility restrictions for the programs to be established by the Centers for Medicare and Medicaid Services.

Specifically, the bill:

(1) Establishes that the medicaid expanded prescription drug benefits shall be offered to individuals whose income meets any maximum income limit that may be established by the Centers for Medicare and Medicaid Services for approval of federal funding of the program, or the current requirement of three hundred per cent of the federal poverty level or less;

(2) Clarifies that payments for each program prescription are paid to a participating pharmacy, instead of an individual pharmacist; and

(3) Establishes a sunset date of July 1, 2006 for the medicaid prescription drug expansion program.

Your Committee finds that the cost of prescription drugs have risen continuously over the last several years. The high cost of prescription drugs is especially difficult for the uninsured elderly, disabled, and individuals on fixed incomes. Other states have established programs similar to Hawaii's medicaid expansion prescription drug program and those programs have provided some financial relief for consumers.

Your Committee believes that this measure provides Hawaii's medicaid prescription drug expansion program the flexibility needed to ensure that the program receives federal approval and funding so that it can begin providing affordable prescription drugs to eligible residents.

Upon further consideration, your Committee has amended this measure by changing the effective date to ensure continued discussion on this measure, and by making technical nonsubstantive changes.

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 H.B. No. 1361, H.D. 2, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 1361, H.D. 2, S.D. 1.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

		____________________________ BRIAN T. TANIGUCHI, Chair