STAND. COM. REP. NO. 285

Honolulu, Hawaii

RE:    S.B. No. 1453

       S.D. 1

Honorable Shan S. Tsutsui

President of the Senate

Twenty-Sixth State Legislature

Regular Session of 2011

State of Hawaii

Sir:

     Your Committees on Commerce and Consumer Protection and Health, to which was referred S.B. No. 1453 entitled:

"A BILL FOR AN ACT RELATING TO PRESCRIPTION MEDICATIONS,"

beg leave to report as follows:

     The purpose and intent of this measure is to direct the Insurance Commissioner to develop a standardized prior authorization request form and process to be used by health care providers and insurers.

     Your Committees received testimony in support of this measure from Hawaii Medical Association, University of Hawai‘i System, Hawai‘i State Center for Nursing, ‘Ohana Health Plan, the American Cancer Society, The American Congress of Obstetricians and Gynecologists, the Power of Pain Foundation, the Neuropathy Action Foundation, The Alliance for Plasma Therapies, Pharmaceutical Research and Manufacturers of America, FACE Health Care Committee, the Hawaii Academy of Physician Assistants, and five private individuals.  Your Committees received testimony in opposition to this measure from the Insurance Commissioner of the Department of Commerce and Consumer Affairs, Hawaii Medical Service Association, and AlohaCare.  Your Committees received comments on this measure from the Department of Human Services.

     Your Committees find that the prior authorization process is not standardized across insurers and providers and is often conducted without the benefit of communications technology, thereby creating unnecessary administrative burdens and costs to health care providers and health insurers.  The current process also results in delays in filling patient prescriptions and potentially adverse health effects.  Your Committees further find that the stakeholders in the issue of prior authorization for prescription medications represent important perspectives on this complex issue.  Therefore, your Committees find that it is appropriate to convene a working group of diverse stakeholders for the purpose of considering the issue of prior authorization for prescription medication and making recommendations for future legislative action based on a consensus of the participants.

     Your Committees have amended this measure by deleting its contents and replacing them with provisions to:

     (1)  Establish the Prescription Medication Prior Authorization Working Group to consider the issue of insurers' prior authorization requirements for prescription medications and make recommendations for legislative action based on consensus of the participants;

     (2)  Provide for the structure and composition of the Prescription Medication Prior Authorization Working Group; and

     (3)  Reflect the amended purpose of this measure and related legislative finding.

     As affirmed by the records of votes of the members of your Committees on Commerce and Consumer Protection and Health that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 1453, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 1453, S.D. 1, and be referred to the Committee on Ways and Means.

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

____________________________ JOSH GREEN, M.D., Chair

____________________________ ROSALYN H. BAKER, Chair