STAND. COM. REP. NO.  8

 

Honolulu, Hawaii

                , 2025

 

RE:   H.B. No. 205

      H.D. 1

 

 

 

 

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

 

Madame:

 

     Your Committee on Labor, to which was referred H.B. No. 205 entitled:

 

"A BILL FOR AN ACT RELATING TO WORKERS' COMPENSATION,"

 

begs leave to report as follows:

 

     The purpose of this measure is to limit the amount an employee has to pay for clinically necessary nonprescription, over-the counter, or nonlegend drugs for workers' compensation purposes.

 

     Your Committee received testimony in support of this measure from the Department of Labor and Industrial Relations and one individual.  Your Committee received testimony in opposition to this measure from the Hawaii Insurers Council.

 

     Your Committee finds that a payment rate for nonprescription, over-the-counter, or nonlegend drugs is necessary to limit the rising cost of workers' compensation insurance policies.  Your Committee further finds that the State's unclear reimbursement rates for these drugs causes inflated drug prices, which then increases the cost of workers' compensation insurance policies.  Your Committee believes that this measure will help reduce overall costs by establishing a clear payment rate in statute.

 

     Your Committee amended this measure by:

 

     (1)  Clarifying that payment for nonprescription, over-the-counter, or nonlegend drugs shall not exceed cost plus forty per cent; and

 

     (2)  Changing the effective date to July 1, 3000, to encourage further discussion.

 

     As affirmed by the record of votes of the members of your Committee on Labor that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 205, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 205, H.D. 1, and be referred to your Committee on Consumer Protection & Commerce.

 

 

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

 

 

 

 

____________________________

JACKSON D. SAYAMA, Chair