HOUSE OF REPRESENTATIVES

H.B. NO.

668

THIRTIETH LEGISLATURE, 2019

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

RELATING TO healthcare.

 

 

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

 


     SECTION 1.  The legislature finds that the Sovereign States Drug Consortium (Consortium) is a collaborative group of state medicaid programs organized as a collective medicaid purchasing and rebate pool to provide residents of member states with quality pharmaceutical care while controlling costs.  The Consortium is the only state-owned drug rebate pool approved by the federal Centers for Medicare and Medicaid Services to leverage the purchasing power of its member states' collective residents while providing each state with full ownership of its respective medicaid drug purchasing contracts.

     The primary activity of the Consortium is a medicaid drug rebate program that negotiates for rebates that are in addition to those required under the federal medicaid drug rebate program.  Participation in the Consortium allows member states to negotiate contracts directly with and access rebates directly from the manufacturers of prescription drugs and durable medical equipment purchased through state medicaid programs.  The Consortium contracts with a third party to administer the rebate solicitation, negotiation, and evaluation process.  This allows states greater flexibility in medicaid purchasing contracts and greater access to rebates and discounts negotiated by the Consortium.

     The purpose of this Act is to require the department of human services to enroll Hawaii as a member of the Sovereign States Drug Consortium to lower medicaid purchasing and administrative costs to the State.

     SECTION 2.  The director of human services, on behalf of the State, is authorized to apply for membership in the Consortium, and shall apply for membership upon approval of this Act.

     SECTION 3.  The department of human services and department of health may seek grants from private or federal sources to assist the department of human services in funding membership of the State in the Consortium.

     SECTION 4.  This Act shall take effect upon its approval.

 

INTRODUCED BY:

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Report Title:

Sovereign States Drug Consortium; Medicaid; Department of Human Services; Department of Health

 

Description:

Requires the Department of Human Services to enroll Hawaii as a member in the Sovereign States Drug Consortium to lower medicaid purchasing and administrative costs to the State.

 

 

 

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