STAND. COM. REP. NO. 2185

Honolulu, Hawaii

RE:    S.B. No. 2106

       S.D. 1

Honorable Shan S. Tsutsui

President of the Senate

Twenty-Sixth State Legislature

Regular Session of 2012

State of Hawaii

Sir:

     Your Committee on Health, to which was referred S.B. No. 2106 entitled:

"A BILL FOR AN ACT RELATING TO HEALTH,"

begs leave to report as follows:

     The purpose and intent of this measure is to require health insurers to provide outpatient prescription drug coverage, prohibit health insurers from requiring coinsurance as a basis for cost sharing with the insured for outpatient prescription drug benefits, and limit the amount of copayment an insured must pay for outpatient prescription drugs.

     Your Committee received testimony in support of this measure from HMSA; the American Cancer Society Hawaii Pacific, Inc.; Hawaii Academy of Physician Assistants; National Multiple Sclerosis Society – Hawaii Division; the Neuropathy Association; Arthritis Foundation – Hawaii Branch; Neuropathy Action Foundation; Advocacy for Patients with Chronic Illness; the Myositis Association; Immune Deficiency Foundation; Patient Services, Inc.; National Council of Asian Pacific Islander Physicians; Faith Action for Community Equity (FACE); GBS/CIDP Foundation International; National Cornerstone Healthcare Services, Inc.; and one individual.  Your Committee received comments on this measure from the Department of Commerce and Consumer Affairs and one insurance plan professional.

     Your Committee finds that outpatient medical therapy is critical to quality care in an efficient health care system and that outpatient medications should be made as affordable and accessible as possible. 

     Your Committee has amended this measure by:

     (1)  Deleting the provisions relating to mutual benefit societies that would restrict coinsurance as a basis for cost sharing, place a $150 cap on copayments for a one-month supply of a prescription drug, and include prescription drugs in any limit of a member's out-of-pocket expenses for covered outpatient prescription drugs; and

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

     As affirmed by the record of votes of the members of your Committee on Health that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2106, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2106, S.D. 1, and be referred to the Committee on Commerce and Consumer Protection.

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

____________________________

JOSH GREEN, M.D., Chair