STAND. COM. REP. NO. 2871

Honolulu, Hawaii

RE:    S.C.R. No. 42

       S.D. 1

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fifth State Legislature

Regular Session of 2010

State of Hawaii

Madam:

     Your Committee on Health, to which was referred S.C.R. No. 42 entitled:

"SENATE CONCURRENT RESOLUTION EXPRESSING SUPPORT FOR LOCAL ACCOUNTABILITY OF DRUG FORMULARIES AND DRUG PRIOR AUTHORIZATION POLICIES,"

begs leave to report as follows:

     The purpose of this measure is to support the practice of utilizing locally-based drug formulary advisory boards to determine drug formularies and drug prior authorization policies for all insurance plans doing business in Hawaii.

     Your Committee received testimony in support of this measure from the Hawaii Medical Association, the Hawaii Government Employees Association, AFSCME Local 152, AFL-CIO, the American Cancer Society, and two individuals.  Testimony in support of the intent of this measure with amendments was received from the Hawaii Medical Service Association.  Written testimony presented to the Committee may be reviewed on the Legislature's website.

     Your Committee finds that outsourcing the determination of drug formularies and drug prior authorization policies to out-of-state pharmacy benefit managers has had negative effects on the quality of care and the practice of medicine in Hawaii.  Complaints in this regard include poor service, delays in receiving medications, and poor communication with the provider.  In addition, out-of-state pharmacy benefit managers may have no meaningful accountability to local physicians, pharmacists, and patients.

     This measure expresses legislative support for the maintenance of locally-based pharmacy and therapeutics committees comprising Hawaii-licensed physicians and pharmacists who are actually engaged in practice in Hawaii.  Requiring health insurers to use their own local formulary boards will improve the efficiency and quality of health care in Hawaii and reduce administrative burdens currently experienced by Hawaii physicians and patients.

     Your Committee has amended this measure by:

     (1)  Adding representatives of the Hawai‘i Employer-Union Health Benefits Trust Fund to the pharmacy and therapeutics committees that will examine the drug formulary and drug prior authorization policies of all health insurance plans doing business in Hawaii; and

     (2)  Making technical, nonsubstantive changes to ensure clarity and accuracy in the language of this measure.

     As affirmed by the record of votes of the members of your Committee on Health that is attached to this report, your Committee concurs with the intent and purpose of S.C.R. No. 42, as amended herein, and recommends that it be referred to the Committee on Commerce and Consumer Protection, in the form attached hereto as S.C.R. No. 42, S.D. 1.

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

____________________________

DAVID Y. IGE, Chair