STAND. COM. REP. NO. 1682

Honolulu, Hawaii

RE:    H.B. No. 1359

       H.D. 1

       S.D. 2

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Madam:

     Your Committee on Ways and Means, to which was referred H.B. No. 1359, H.D. 1, S.D. 1, entitled:

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

begs leave to report as follows:

     The purpose of this measure is to ensure affordable prescription drug medications for Hawaii's uninsured, underinsured, low-income, elderly, and disabled residents.

     Specifically, this measure creates a Hawaii State Pharmacy Assistance Program by merging the current State Pharmacy Assistance Program, which coordinates the Medicare Part D drug benefit, and the newly established Hawaii Rx Plus Program under a single comprehensive Hawaii State Pharmacy Assistance Program umbrella.

     Your Committee received comments in support of this measure from the Department of Human Services with recommendations for amendments.  The American Association of Retired Persons offered comments.

     Upon further consideration, your Committee has amended this measure by:

(1)  Adding a new section to establish the Hawaii Rx plus program in chapter 346, Hawaii Revised Statutes;

(2)  Adding a new definition of "program" to refer to the Hawaii state pharmacy assistance program;

(3)  Deleting the circular requirement that tier one, two, and three enrollees be enrolled in the program to be eligible to enroll in the program;

(4)  Deleting the contents of proposed new subsection 346‑342(m), Hawaii Revised Statutes, and replacing it with language that requires a manufacturer that sells prescription drugs in the State enter into a rebate agreement with the department as approved by the federal Centers for Medicare and Medicaid Services; and

(5)  Making technical nonsubstantive amendments for the purposes of clarity, consistency, and style.

     As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1359, H.D. 1, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 1359, H.D. 1, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

____________________________

ROSALYN H. BAKER, Chair