STAND. COM. REP. NO.  1175

Honolulu, Hawaii

                , 2007

RE:   H.B. No. 1359

      H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Sir:

     Your Committee on Finance, to which was referred H.B. No. 1359 entitled:

"A BILL FOR AN ACT RELATING TO THE STATE PHARMACY ASSISTANCE PROGRAM,"

begs leave to report as follows:

     The purpose of this bill is to create a Hawaii State Pharmacy Assistance Program by merging the current State Pharmacy Assistance Program, which coordinates the Medicare Part D drug benefit and the Hawaii Rx Plus Program under a single comprehensive Hawaii State Pharmacy Assistance Program umbrella.

     The Department of Human Services (DHS) testified in support of this bill.  Kokua Council, Hawaii Aging Advocates Coalition, and AARP Hawaii supported the intent of this measure.

     Your Committee has amended this bill by inserting language that requires:

     (1)  DHS to take all steps necessary to enable participation in joint prescription drug purchasing agreements with any other health benefits plan or organization within or outside of this state; and

     (2)  The Director of DHS to:

          (A)  Execute any joint purchasing agreements with a health benefits plan or organization that will lower the cost of prescription drugs while maintaining quality;

          (B)  For Hawaii Employer-Union Health Benefits Trust Fund plans, execute any joint purchasing agreements that will lower the cost of prescription drugs and provide quality services that is negotiated through the collective bargaining process;

          (C)  Renegotiate and amend existing contracts to which DHS is a party if this will be of economic benefit to the continued health benefits plan and its beneficiaries and improve the overall quality of health care services provided; and

          (D)  Report annually to the Governor and the Legislature DHS' progress in securing Hawaii's participation in joint purchasing agreements.

     Your Committee has also amended this bill by:

     (1)  Deleting the appropriation to DHS for conducting the               study to gather information on the size of the target              population, utilization data, and other information as        needed for DHS to identify the amount of the                appropriation needed to implement the secondary discount        price and other costs of the Hawaii State Pharmacy             Assistance Program;

     (2)  Changing its effective date to July 1, 2020, to                    encourage further discussion; and

     (3)  Making technical, nonsubstantive amendments for clarity,      consistency, and style.

     As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1359, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 1359, H.D. 1.

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

____________________________

MARCUS R. OSHIRO, Chair