STAND. COM. REP. NO.  515

Honolulu, Hawaii

                , 2007

RE:   H.B. No. 10

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Sir:

     Your Committee on Consumer Protection & Commerce, to which was referred H.B. No. 10 entitled:

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

begs leave to report as follows:

     The purpose of this measure is to make the Rx plus prescription drug program more effective.

The bill accomplishes this by:

     (1)  Requiring drug manufacturers that sell prescription drugs to enter into a rebate program with the Department of Human Services; and

     (2)  Requiring the Department of Human Services to provide health care providers with drug costs for manufacturers who enter rebate agreements compared to the costs for manufacturers who do not enter rebate agreements.

     AARP Hawaii, Hawaii Alliance for Retired Americans, Kokua Council, Policy Advisory Board for Elder Affairs, Public Health Committee of Faith Action for Community Equity, and ILWU Local 142 submitted testimony in support of the measure.  The Pharmaceutical Research and Manufacturers of America submitted testimony in opposition to the measure, while the Department of Human Services submitted comments.

     Your Committee finds that the Rx plus program was established to provide access to affordable prescription drugs to Hawaii residents.  Current law authorizes, but does not require, rebate agreements with drug manufacturers.  By requiring drug manufacturers who do business in the State to provide quarterly rebates to the Department of Human Services, your Committee finds that prescription drugs may be made available at prices lower than those currently offered through Rx plus.  The required disclosure of drug cost comparisons provides an added incentive for manufacturers to participate in a rebate agreement.  Hawaii residents deserve the State's best efforts to obtain reasonably priced prescription drugs.

     As affirmed by the record of votes of the members of your Committee on Consumer Protection & Commerce that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 10 and recommends that it be referred to the Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Consumer Protection & Commerce,

____________________________

ROBERT N. HERKES, Chair