STAND. COM. REP. NO. 665

Honolulu, Hawaii

, 2005

RE: H.B. No. 32

H.D. 2

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Judiciary, to which was referred H.B. No. 32, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO PRESCRIPTION DRUG COST CONTAINMENT AND AFFORDABLE ACCESS,"

begs leave to report as follows:

The purpose of this bill is to contain the cost of prescription drugs by establishing a Pharmacy Best Practices and Cost Control Program (Program). Specifically, this bill, among other things:

(1) Requires the Program to include certain activities, goals, and procedures to reduce the cost of prescription drugs while maintaining high quality in prescription drug therapies;

(2) Requires the Director of Human Services (Director) to implement the Program for Medicaid and all other state public assistance program health benefits plans to the extent permitted by federal law;

(3) Allows the Director to implement the Program for any other health benefits plan that agrees to participate in the Program;

(4) Establishes a preferred list of covered prescription drugs and a prior authorization review process;

(5) Establishes the Drug Utilization Review Board to, among other things, make recommendations to the Director concerning the adoption of the preferred list of covered prescription drugs and recommend additions or deletions from the preferred list;

(6) Establishes reporting and oversight provisions regarding the Program;

(7) Requires pharmaceutical marketers to disclose the purpose of any gifts, fee, payments, or other economic benefits of $25 or more, provided to persons in Hawaii who prescribe, dispense, or purchase prescription drugs;

(8) Provides for the execution of any joint purchasing agreements or other contracts with any participating health benefits plan or organization that the Director determines will lower prescription drug costs for residents while maintaining high quality prescription drug therapies; and

(9) Promotes outcome-based assessments and treatment in Hawaii's health care system through the development of a statewide quality assurance system and an effective quality improvement process.

AARP Hawaii, Kokua Council, and several concerned citizens supported this bill. ILWU Local 142 supported the intent of this bill. The Department of Human Services, Hawaii Medical Service Association, and Office of Information Practices offered comments.

Your Committee recognizes the importance of reducing the cost of prescription drugs, especially for Hawaii's most vulnerable and impoverished residents. However, concerns were raised in testimony regarding specific provisions contained in this measure. Your Committee encourages further discussion to develop a compromise solution that fairly addresses the concerns of all of the stakeholders for this bill.

Your Committee has amended this bill by making technical, nonsubstantive amendments for clarity, consistency, and style.

 

As affirmed by the record of votes of the members of your Committee on Judiciary that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 32, H.D. 1, as amended herein, and recommends that it be referred to the Committee on Finance in the form attached hereto as H.B. No. 32, H.D. 2.

 

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

 

____________________________

SYLVIA LUKE, Chair