STAND. COM. REP. NO. 2073

Honolulu, Hawaii

, 2025

RE: S.C.R. No. 69

S.D. 1

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 Health, to which was referred S.C.R. No. 69, S.D. 1, entitled:

"SENATE CONCURRENT RESOLUTION REQUESTING THE ADMINISTRATOR OF THE STATE HEALTH PLANNING AND DEVELOPMENT AGENCY TO CONVENE A PHARMACY BENEFIT MANAGER WORKING GROUP TO DETERMINE THE BEST POLICIES TO REFORM PHARMACY BENEFIT MANAGER PRACTICES IN THE STATE TO ENSURE TRANSPARENCY AND FAIRNESS FOR CONSUMERS AND IN THE PHARMACEUTICAL SECTOR, LOWER DRUG COSTS FOR PATIENT CONSUMERS, AND INCREASE ACCESS TO HEALTH CARE,"

begs leave to report as follows:

The purpose of this measure is to request the Administrator of the State Health Planning and Development Agency to convene a Pharmacy Benefit Manager Working Group to determine the best policies to reform pharmacy benefit manager practices in the State to ensure transparency and fairness for consumers and in the pharmaceutical sector, lower drug costs for patient consumers, and increase access to health care.

Your Committee received testimony in support of this measure from the State Health Planning and Development Agency; University of Hawai‘i at Hilo; Hawai‘i Pharmacists Association; Hawaii Medical Association; Walgreen Co.; Work Injury Medical Association of Hawaii; and six individuals. Your Committee received comments on this measure from the Department of Human Services and PCMA.

Your Committee finds that rising prescription drug costs are a major concern to Hawaii residents. Your Committee further finds that establishing a working group to identify the best options for lowering consumer drug costs and increasing health care access will enable lawmakers to enact policies that ensure fairness and transparency and ensure the State's residents are able to access needed medications, while also minimizing any unintended consequences to pharmacies and other health care providers.

Your Committee has amended this measure by:

(1) Deleting certain findings relating to pharmacy benefit managers;

(2) Narrowing the scope of the working group to solely determining the best policies to lower drug costs for patient consumers and increasing access to health care, and removing the request to determine the best policies to reform pharmacy benefit manager practices;

(3) Amending the composition of the working group;

(4) Amending the priority areas the working group is requested to evaluate;

(5) Requesting the working group to refrain from seeking or requesting certain protected information;

(6) Amending its title in accordance with its amended purpose; and

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

As affirmed by the record of votes of the members of your Committee on Health that is attached to this report, your Committee concurs with the intent and purpose of S.C.R. No. 69, S.D. 1, as amended herein, and recommends that it be referred to your Committee on Consumer Protection & Commerce in the form attached hereto as S.C.R. No. 69, S.D. 1, H.D. 1.

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

____________________________

GREGG TAKAYAMA, Chair