STAND. COM. REP. NO. 2008

Honolulu, Hawaii

, 2025

RE: S.B. No. 1245

S.D. 2

H.D. 2

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Madame:

Your Committee on Consumer Protection & Commerce, to which was referred S.B. No. 1245, S.D. 2, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO PHARMACISTS,"

begs leave to report as follows:

The purpose of this measure is to mandate reimbursement for services provided by participating registered pharmacists within their scope of practice by private and public health plans in the State.

Your Committee received testimony in support of this measure from the University of Hawai‘i at Hilo; Board of Pharmacy; Hawai‘i Pacific Health; Hawai‘i Primary Care Association; Grassroot Institute of Hawaii; Walgreen Co.; National Community Pharmacists Association; The Family Medicine Center; Molokaʻi Drugs, Inc.; Hawaiʻi Pharmacists Association; East Hawaii Independent Physicians Association dba Big Island Docs; Times Pharmacy; The Keto Prescription Clinic; Lihue Pharmacy; KTA Pharmacy; Hawai‘i Island Community Health Center; and numerous individuals. Your Committee received comments on this measure from the Department of Commerce and Consumer Affairs and Hawaii Medical Service Association.

Your Committee finds that the practice of pharmacy has evolved alongside significant changes in health care delivery. Patient demand on the health care system is expected to increase significantly and outpace current provider supply over the next few years. As a result, pharmacists now play a vital role in health care and are increasingly providing patient care services beyond the traditional prescription dispensing function.

Your Committee further finds that in Hawaii, pharmacies are geographically dispersed throughout the community with extended hours of operation, making access to health care provided through pharmacies convenient for patients in each locality. Patients have established relationships of trust with and recognize pharmacists as health care professionals. This measure recognizes the importance of registered pharmacists within the State's health care system and ensures the proper compensation for their services.

Your Committee has amended this measure by:

(1) Specifying that the provisions of this measure applicable to health insurers, mutual benefit societies, and health maintenance organizations apply to policies, contracts, plans, or agreements delivered or issued for delivery on or after January 1, 2026, rather than July 1, 2026;

(2) Deleting language that required policies, contracts, plans, or agreements by health insurers, mutual benefit societies, and health maintenance organizations to recognize pharmacists as participating providers;

(3) Specifying that coverage for benefits for health care services provided by a registered pharmacist shall not be denied if certain conditions are met;

(4) Clarifying that the participation of a registered pharmacist in a policy, contract, plan, or agreement that includes coverage for prescription drug benefits does not satisfy the requirements that health insurers, mutual benefit societies, and health maintenance organizations include contracted registered pharmacists in their networks of participating providers;

(5) Prohibiting insurers, mutual benefit societies, and health maintenance organizations from denying the ability for a registered pharmacist to contract with those entities if standard credentialing requirements are met, except for vertically integrated networks;

(6) Specifying that insurers, mutual benefit societies, and health maintenance organizations that delegate credentialing agreements to health care facilities shall accept credentialing of registered pharmacists employed or contracted by those facilities; 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 Consumer Protection & Commerce that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1245, S.D. 2, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 1245, S.D. 2, H.D. 2.

Respectfully submitted on behalf of the members of the Committee on Consumer Protection & Commerce,

____________________________

SCOT Z. MATAYOSHI, Chair