STAND. COM. REP. NO. 8
Honolulu, Hawaii
, 2005
RE: H.B. No. 32
H.D. 1
Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twenty-Third State Legislature
Regular Session of 2005
State of Hawaii
Sir:
Your Committees on Consumer Protection and Commerce, Health, and Human Services, to which was referred H.B. No. 32 entitled:
"A BILL FOR AN ACT RELATING TO PRESCRIPTION DRUG COST CONTAINMENT AND AFFORDABLE ACCESS,"
beg leave to report as follows:
The purpose of the bill is to reduce the high cost of prescription drugs by requiring the Director of the Department of Human Services (DHS) to establish a Pharmacy Best Practices and Cost Control Program (Program). Among other things, the Program would:
(1) Seek to maximize participation by public and private health plans within and outside of the state, and would include Hawaii Medicaid and other public assistance programs to the extent permitted by law;
(2) Establish a preferred list of covered prescription drugs and a prior authorization review process;
(3) Employ any strategy designed to lower the cost of prescription drugs through negotiation with drug manufacturers, including joint purchasing agreements with participating health benefits plans, and the use of the preferred drug list to negotiate rebates;
(4) Require pharmaceutical marketers to disclose the purpose of any gifts, fees, or other economic benefits of $25 or more, provided to persons in Hawaii who prescribe, dispense, or purchase prescription drugs; and
(5) Promote outcomes-based assessment and treatment in Hawaii's health care system through the development of a statewide quality assurance system.
Your Committees received testimony in support of this bill from AARP Hawaii. Testimony supporting the intent of the bill was received from ILWU Local 142, HMSA, and Kaiser Permanente. Testimony in opposition was received from the Pharmaceutical Research and Manufacturers of America and DHS. The Board of Pharmacy and Office of Information Practices offered comments.
Your Committees find that this bill may offer solutions for controlling the escalating costs of prescription medications for local consumers by establishing best practices and cost containment programs. Furthermore, your Committees find that requiring pharmaceutical drug manufacturers to disclose the purpose of gifts of more than $25 in value to health care professionals may bring some transparency to the practices of the pharmaceutical industry.
Although your Committees recognize that many legitimate concerns were raised regarding this bill, your Committees are hopeful that such concerns may be addressed as this measure moves through the legislative process. In light of these concerns, your Committees have amended this bill by providing a defective date of July 1, 2099, in the interest of facilitating further discussion.
Technical, nonsubstantive amendments were also made for clarity, consistency, and style.
As affirmed by the records of votes of the members of your Committees on Consumer Protection and Commerce, Health, and Human Services that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 32, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 32, H.D. 1, and be referred to the Committee on Judiciary.
Respectfully submitted on behalf of the members of the Committees on Consumer Protection and Commerce, Health, and Human Services,
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____________________________ DENNIS A. ARAKAKI, Chair |
____________________________ KENNETH HIRAKI, Chair |
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____________________________ ALEX M. SONSON, Chair |