STAND. COM. REP. NO. 523-04

Honolulu, Hawaii

, 2004

RE: H.B. No. 2005

H.D. 1

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committee on Finance, to which was referred H.B. No. 2005 entitled:

"A BILL FOR AN ACT RELATING TO PRESCRIPTION DRUGS,"

begs leave to report as follows:

The purpose of this bill is to reduce prescription drug costs and improve the quality of health care for qualified Hawaii residents, by making amendments to improve the state discounted prescription drug, Rx Program, by among other things, renaming the program, the Rx Plus Program.

The Department of Human Services, Hawaii State Commission on the Status of Women, ILWU Local 142, Policy Advisory Board for Elder Affairs, Kokua Council, Healthcare Association of Hawaii, AARP Hawaii, the Public Health Committee of Faith Action for Community Equity, Hawaii Alliance for Retired Americans, and two individuals submitted testimony in support of this bill. The Department of Health supported the intent of this bill.

Your Committee has amended this bill as recommended by the Department of Human Services, by replacing its contents with the substance of S.B. No. 3237, S.D.1.

As amended, the Rx Plus Program applies to residents of the State who:

(1) Are enrolled in the program;

(2) Have family incomes equal to or less than 350 percent of the federal poverty level; and

(3) Do not have prescription drug coverage or have exceeded the extent of their benefits.

As provided under the amendments, DHS is to establish a preferred drug list that includes but is not limited to drugs on the Medicaid preferred drug list, antipsychotic drugs, antidepressant drugs, chemotherapy drugs, antiretroviral drugs, and immunosuppressive drugs.

In addition, DHS is to negotiate and utilize manufacturer rebates and pharmacy discounts to reduce prescription drug prices for the program and achieve the maximum possible discount for program members. Participating pharmacies are to offer the initial discounted price beginning July 1, 2004.

Your Committee has also amended the measure to appropriate $400,000 for fiscal year 2004-2005 to fund the Rx Plus Program.

As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2005, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 2005, H.D. 1.

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

 

____________________________

DWIGHT Y. TAKAMINE, Chair