STAND. COM. REP. NO. 1242

Honolulu, Hawaii

RE:    H.B. No. 1359

       H.D. 1

       S.D. 1

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Madam:

     Your Committees on Health and Commerce, Consumer Protection, and Affordable Housing, to which was referred H.B. No. 1359, H.D. 1, entitled:

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

beg leave to report as follows:

     The purpose of this measure is to ensure affordable prescription 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 Hawaii Rx Plus Program under a single comprehensive Hawaii State Pharmacy Assistance Program umbrella.

     Your Committees received testimony in support of this measure from the Department of Health.  The AARP submitted testimony supporting the intent of this measure.  Hawaii Medical Service Association submitted comments.

     Your Committees find that the escalating costs of prescription medications have resulted in our neediest residents being unable to afford their medications.  Often these individuals are forced to choose between necessities of daily life and needed prescription medication.  Your Committees further find that this measure will make prescription drugs more affordable for our communities, while augmenting State funding with drug manufacturer rebates.

     Your Committees note that the Department of Human Services has recommended that the amount of $50,000 should be appropriated to conduct the study on determining the cost of implementing various aspects of the Hawaii State Pharmacy Assistance Program.

     Your Committees amended this measure by changing the effective date for the substantive provisions of the measure that establish the Hawaii State Pharmacy Assistance Program from July 1, 2020, to January 1, 2008, due to the fact the Medicare Part D plans will be implementing new rates as of January 2008, and to July 1, 2007, for the appropriation.

     Your Committees further amended this measure by making technical, nonsubstantive changes for the purposes of clarity, consistency, and style.

     As affirmed by the records of votes of the members of your Committees on Health and Commerce, Consumer Protection, and Affordable Housing that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 1359, H.D. 1, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 1359, H.D. 1, S.D. 1, and be referred to the Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Health and Commerce, Consumer Protection, and Affordable Housing,

____________________________ BRIAN T. TANIGUCHI, Chair

____________________________ DAVID Y. IGE, Chair