Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committees on Human Services and Health, to which was referred H.B. No. 1317 entitled:

beg leave to report as follows:

The purpose of this bill is to prohibit the Department of Human Services (DHS) from taking any action or expending state resources in any effort to remove prescription drug benefits from managed care plans that provide health care coverage for Medicaid beneficiaries.

Kaiser Permanente and a concerned individual testified in support of this measure. AlohaCare supported the intent of this measure. DHS opposed this measure.

Your Committees are concerned that the removal of prescription drug benefits from Medicaid programs would result in a fragmented health care delivery system and disruption in the care of individuals in need of prescription drugs. While DHS has indicated that "carving out" prescription drugs from Medicaid programs would result in cost-savings to the State, your Committee is concerned that individuals would be left without prescription drug coverage.

Accordingly, your Committee has amended this bill by changing the effective date to July 1, 2099, to facilitate further discussion.

As affirmed by the records of votes of the members of your Committees on Human Services and Health that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 1317, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 1317, H.D. 1, and be referred to the Committee on Consumer Protection & Commerce.