STAND. COM. REP. NO.  775

Honolulu, Hawaii

                , 2011

RE:   H.B. No. 1243

      H.D. 2

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Sixth State Legislature

Regular Session of 2011

State of Hawaii

Sir:

     Your Committee on Finance, to which was referred H.B. No. 1243, H.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO REPACKAGED DRUGS AND COMPOUND MEDICATIONS,"

begs leave to report as follows:

     The purpose of this bill is to help mitigate unreasonable increases in the cost of prescription drugs, including repackaged prescription drugs and compound medications in Hawaii's workers' compensation insurance system by providing reasonable restrictions on markups similar to those currently authorized for retail pharmacies under state law.

     The Department of Human Resources Development, Hawaii Insurers Council, Hawaii Employers' Mutual Insurance Company, Inc., and Property Casualty Insurers Association of America testified in support of this bill.  Automated HealthCare Solutions, Quality Care Products, LLC, Hawaii Injured Worker's Alliance, and several concerned individuals testified in opposition to this measure.

     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. 1243, H.D. 2, and recommends that it pass Third Reading.

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

____________________________

MARCUS R. OSHIRO, Chair