STAND. COM. REP. NO.  786-16

Honolulu, Hawaii

                , 2016

RE:   H.B. No. 1672

      H.D. 2

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Eighth State Legislature

Regular Session of 2016

State of Hawaii

Sir:

     Your Committee on Judiciary, to which was referred H.B. No. 1672, H.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO PRESCRIPTION DRUG BENEFITS,"

begs leave to report as follows:

The purpose of this measure is to authorize a beneficiary of a prescription drug benefit plan to obtain a prescription without penalty from a non-network retail community pharmacy located within a certain distance of the beneficiary's residence, if the nearest network retail community pharmacy is located more than fourteen miles away from the beneficiary's residence.

The Queen's Health Systems and one concerned individual testified in support of this measure.  The Hawaii Employer-Union Health Benefits Trust Fund Board of Trustees, Hawaii Medical Service Association, Kaiser Permanente Hawaii, Express Scripts Holding Company, and Hawaii Association of Health Plans testified in opposition.  The Department of Commerce and Consumer Affairs, Ohana Health Plans, and CVS Health provided comments.

     As affirmed by the record of votes of the members of your Committee on Judiciary that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1672, H.D. 2, and recommends that it pass Third Reading.

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

____________________________

KARL RHOADS, Chair