Report Title:

Prescription Drug Prices; Manufacturer Disclosure

Description:

Requires quarterly reports from manufacturers of prescription drugs dispensed in the state that disclose the average wholesale price, wholesale acquisition cost, average manufacturer price, and best price for each of the manufacturer's drugs. Effective date July 1, 2099. (HB31 HD1)

HOUSE OF REPRESENTATIVES

H.B. NO.

31

TWENTY-THIRD LEGISLATURE, 2005

H.D. 1

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

relating to prescription drugs.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. Chapter 328, Hawaii Revised Statutes, is amended by adding a new part to be appropriately designated and to read as follows:

"Part . actual price disclosure and certification

of prescription drug prices

§328-A Quarterly report. A manufacturer of prescription drugs dispensed in this state under a health program directed or administered by the State, on a quarterly basis, shall report by National Drug Code the following pharmaceutical pricing criteria to the director for each of its drugs:

(1) The average wholesale price;

(2) The wholesale acquisition cost;

(3) The average manufacturer price as defined in 42 United States Code, Section 1396r-8(k)(1); and

(4) The best price as defined in 42 United States Code, Section 1396r-8(c)(1)(C).

§328-B Calculation. The calculation of average wholesale price and whole acquisition cost must be the net of all volume discounts, prompt payment discounts, charge-backs, short-dated product discounts, cash discounts, free goods, rebates, and all other price concessions or incentives provided to a purchaser that result in a reduction in the ultimate cost to the purchaser.

§328-C Description of methodology. When reporting the average wholesale price, wholesale acquisition cost, average manufacturer price, and best price, a manufacturer of prescription drugs dispensed in this state shall also include a detailed description of the methodologies by which the prices were calculated.

§328-D Certification. When a manufacturer of prescription drugs dispensed in this state reports the average wholesale price, wholesale acquisition cost, average manufacturer price, or best price, the president or chief executive officer of the manufacturer shall certify to the director, on a form provided by the director, that the reported prices are accurate.

§328-E Confidentiality. Except as provided in this part, all information provided to the director by a manufacturer of prescription drugs under this section is confidential and shall not be disclosed by any person or by the department to any person without the consent of the manufacturer; provided that disclosure may be:

(1) Made by the department to an entity providing services to the department under this section; and

(2) Ordered by a court for good cause shown or made in a court filing under seal or until otherwise ordered by a court.

Nothing in this part limits the attorney general's use of civil investigative demand authority under the Hawaii Unfair Trade Practices Act to investigate violations of this part.

§328-F Violation. A violation of this part is a violation of section 480-2. This section shall be enforced by the attorney general.

§328-G Funding restriction. The department's costs for implementing this part shall be funded by revenues that the attorney general has received as a result of consumer protection litigation involving pharmaceutical pricing or practices. General funds may not be expended for the purposes of this part.

§328-H Reporting. Manufacturers of prescription drugs subject to section 328-A shall begin the submission of quarterly reports at the end of the first full calendar quarter after the effective date of this part."

SECTION 2. When the attorney general receives revenues based upon consumer protection litigation involving pharmaceutical pricing or practices and the attorney general designates these revenues as available to implement this Act, the attorney general shall submit a letter to the director of human services that informs the director of these facts. Section 1 of this Act shall take effect thirty days after the director receives the letter from the attorney general.

SECTION 3. In codifying the new sections added by section 1 of this Act, the revisor of statutes shall substitute appropriate section numbers for the letters used in designating the new sections in this Act.

SECTION 4. This Act shall take effect on July 1, 2099.