SB318

THE SENATE	S.B. NO.	318
THIRTY-FIRST LEGISLATURE, 2021
STATE OF HAWAII

A BILL FOR AN ACT

relating to prescription drugs.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. The Hawaii Revised Statutes is amended by adding a new chapter to be appropriately designated and to read as follows:

"Chapter

STATE PURCHASING POOL FOR prescription drugs

§ -1 Definitions. For purposes of this chapter:

"County public employer" means the mayor of the city and county of Honolulu and the mayor of each of the counties of Hawaii, Kauai, and Maui.

"Department" means the department of health.

"Health insurance carrier" means an entity subject to the insurance laws of the State that offers health insurance, health benefits, or contracts for health care services, including prescription drug coverage, to large groups, small groups, or individuals.

§ -2 State purchasing pool for prescription drug program; established. There is established the state prescription drug purchasing pool. The department shall offer county public employers, self-insured private employers, and health insurance carriers the option to purchase prescription drugs for their employees, employees' dependents, retirees, and insureds under the purchasing authority of the State, subject to this chapter.

§ -3 Participation procedures. The department shall establish procedures to determine:

(1) Eligibility requirements;

(2) Enrollment procedures;

(3) Duration;

(4) Payment requirements; and

(5) Withdrawal and termination procedures;

for participation in the state prescription drug purchasing pool by county public employers, self-insured private employers, and health insurance carriers.

§ -4 Stop loss coverage. The department may offer to county public employers, self-insured private employers, and health insurance carriers participating in the state prescription drug purchasing pool the option to purchase stop loss coverage from an insurer at a rate negotiated by the department.

§ -5 Joint purchases by multiple employers. Two or more county public employers, self-insured private employers, or health insurance carriers may arrange to jointly purchase prescription drugs for their employees, employees' dependents, retirees, and insureds. The arrangement shall not constitute a multiple employer welfare arrangement as defined by 29 United States Code section 1002(40).

§ -6 Extension of the Hawaii employer-union health benefits trust fund. (a) The department may offer self-insured private employers and health insurance carriers the option to purchase prescription drugs through any health benefits plan pursuant to section 87A-16 if the department determines in writing that allowing self-insured private employers or health insurance carriers this option is consistent with the health benefits plan.

(b) A written determination made pursuant to subsection (a) shall not be required if the department establishes a separate prescription drug purchasing plan or plans for self-insured private employers and health insurance carriers.

§ -7 Full cost; claims; prescription drugs. County public employers, self-insured private employers, and health insurance carriers that participate in the state prescription drug purchasing pool shall pay the full cost of their own claims and prescription drugs.

§ -8 Coordination with other prescription drug programs.

The department may administer the state prescription drug purchasing pool in conjunction with any other state prescription drug program, including offering discounts, rebates, and prices secured through the state prescription drug purchasing pool to qualifying participants.

§ -9 Rules. The department may adopt rules pursuant to chapter 91 to implement this chapter."

SECTION 2. This Act shall take effect upon approval.

INTRODUCED BY:	_____________________________