Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committees on Health and Commerce, Consumer Protection, and Housing, to which was referred S.B. No. 1209 entitled:

beg leave to report as follows:

The purpose of this measure is to establish a pharmaceutical cost management council to consider strategies to manage increasing costs of prescription drugs and increase access to prescription drugs for all Hawaii residents.

AARP Hawaii, Kokua Council, and nine individuals submitted testimony in support of this measure. The Department of Human Resources Development and Hawaii Medical Service Association submitted comments. The Department of Human Services and Pharmaceutical Research and Manufacturers of America submitted testimony in opposition.

Your Committees find that the rising cost of prescription drugs has imposed a significant hardship on individuals who have limited budgets, are uninsured, or who have prescription coverage that is unable to control costs successfully due to cost shifting and disparate pricing policies. There is an increasing need for residents of Hawaii to have affordable access to prescription drugs. The collaborative approach taken by this measure should provide a greater opportunity for dialogue on potential solutions in a coordinated manner.

Your Committees have amended this measure by changing the effective date to July 1, 2010, to enable continued discussion on this matter, and by making technical, nonsubstantive amendments for clarity and style.

As affirmed by the records of votes of the members of your Committees on Health and Commerce, Consumer Protection, and Housing that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 1209, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 1209, S.D. 1, and be referred to the Committee on Ways and Means.