STAND. COM. REP. NO. 1665

Honolulu, Hawaii

, 2019

RE: S.B. No. 1401

S.D. 2

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirtieth State Legislature

Regular Session of 2019

State of Hawaii

Sir:

Your Committees on Consumer Protection & Commerce and Judiciary, to which was referred S.B. No. 1401, S.D. 2, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO PHARMACY BENEFIT MANAGERS,"

beg leave to report as follows:

The purpose of this measure is to:

(1) Prohibit pharmacy benefit managers from preventing the disclosure of the cost share of a prescription drug and the disclosure of a more affordable alternative by pharmacists or pharmacies to insureds; and

(2) Prohibit retaliation from pharmacy benefit managers against pharmacists or pharmacies for such disclosure.

Times Pharmacy, Hawaii Pharmacists Association, and a few individuals testified in support of this measure. The Hawaii Association of Health Plans testified in opposition to this measure. The Department of Commerce and Consumer Affairs and CVS Health provided comments.

As affirmed by the records of votes of the members of your Committees on Consumer Protection & Commerce and Judiciary that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 1401, S.D. 2, H.D. 1, and recommend that it be referred to your Committee on Finance.

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

____________________________ CHRIS LEE, Chair

____________________________ ROY M. TAKUMI, Chair