STAND

STAND. COM. REP. 1145

Honolulu, Hawaii

, 2003

RE: S.B. No. 1361

S.D. 2

H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Health, to which was referred S.B. No. 1361, S.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO PRESCRIPTION DRUGS,"

begs leave to report as follows:

The purpose of this bill is to improve patient outcomes and reduce consumer drug costs by:

(1) Expediting the approval of less costly, therapeutically equivalent, generic drugs for substitution; and

(2) Expediting the removal of non-equivalent drugs from the State formulary for generic substitution.

The Department of Health, Hawaii Pharmacists Association, Chamber of Commerce of Hawaii, Kaiser Permanente, American Cancer Society, AARP Hawaii, and Hawaii Medical Service Association testified in support of this measure.

Your Committee finds that currently, the process of approving generic drugs for substitution in place of name-brand drugs is very time consuming, resulting in added expenses for consumers. With the exponential, continual, increase in prescription drug prices, this measure is crucial to providing cost-savings to consumers.

Your Committee has amended this bill by:

(1) Correcting a typographical error;

(2) Inserting a provision to comply with federal regulations regarding Medicaid and Medicare reimbursements;

(3) Reinstating a provision that had been removed in the Senate Draft, and that informed consumers of their right to refuse substitution of a generic drug product; and

(4) Making technical, nonsubstantive amendments for purposes of clarity and style.

As affirmed by the record of votes of the members of your Committee on Health that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1361, S.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1361, S.D. 2, H.D. 1, and be referred to the Committee on Consumer Protection and Commerce.

Respectfully submitted on behalf of the members of the Committee on Health,

		____________________________ DENNIS A. ARAKAKI, Chair