STAND. COM. REP. NO. 1383

Honolulu, Hawaii

RE:    H.B. No. 65

       H.D. 2

       S.D. 2

Honorable Donna Mercado Kim

President of the Senate

Twenty-Seventh State Legislature

Regular Session of 2013

State of Hawaii

Madam:

     Your Committee on Ways and Means, to which was referred H.B. No. 65, H.D. 2, S.D. 1, entitled:

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

begs leave to report as follows:

     The purpose and intent of this measure is to ensure that the beneficiary in a prescription drug benefit plan has a choice of purchasing prescription drugs from either a mail-order pharmacy or a retail pharmacy.

     Your Committee received written comments in support of this measure from the Hawaii Food Industry Association, the Hawaii Medical Association, the Kauai Chamber of Commerce, Molokai Drugs Inc., Walgreens, and several individuals.  Your Committee received written comments in opposition to this measure from CVS Caremark Association and the Hawaii Medical Service Association.  Your Committee received comments on this measure from the Department of Commerce and Consumer Affairs and one individual.

     Your Committee finds that this measure is necessary to ensure that Hawaii continues to have a robust network of pharmacies to serve and provide choices to prescription drug benefit plan beneficiaries in the State.

     Your Committee has amended this measure by:

(1)  Clarifying and defining the terms used in the measure;

(2)  Authorizing a beneficiary of any prescription drug benefit plan, including one enrolled in the Hawaii Employer-Union Health Benefits Trust Fund health benefits plan, to purchase prescription drugs from any pharmacy within the pharmacy benefit manager's retail pharmacy network;

(3)  Deleting language relating to the manipulation of drug co-payment amounts;

(4)  Prohibiting prescription drug benefit plan providers from prohibiting or restricting a pharmacy benefit manager from complying with the requirements of this measure;

(5)  Deleting binding arbitration as an alternative to judicial review;

(6)  Clarifying the entities that are required to submit a report to the Legislature and the scope of their reports;

(7)  Changing the effective date to July 1, 2050, to facilitate continued discussion; and

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

     As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 65, H.D. 2, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 65, H.D. 2, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

____________________________

DAVID Y. IGE, Chair