Hawaii-2020-HR68-Introduced

WHEREAS, prescription medications are as important to the health and safety of State residents as traditional public services or utilities such as transportation, gas, electric, telecommunications, and water; and

WHEREAS, the state has traditionally regulated the consumer price of utilities because of the monopoly structure of the market; and

WHEREAS, the cost of many prescription drugs have become increasingly unaffordable for residents, employers, and the State because parts of the prescription drug market are monopolies or oligopolies, and the costs to consumers in these parts of the market are not managed; and

WHEREAS, the difference between the affordability of traditional utilities and the costs/affordability of prescription drugs is due in part to the active role of our State government in directing how much consumers pay for utilities and the corresponding inactive role of our State government in directing how much consumers pay for drug; and

WHEREAS, state and federal agencies have a long history of health care rate setting including for brand pharmaceuticals and biologics, and generic drugs to control health care costs; and

WHEREAS, Canada has a national drug price review board that seldom has to exert its express authority in order for the industry to offer drugs to market at prices that are, on average, 30 percent less than U.S. list prices; and

WHEREAS, a growing number of states are considering legislation to create prescription drug affordability review boards; and

WHEREAS, the state has a legitimate government interest in increasing transparency in prescription drug pricing and controlling state costs in prescription drug coverages; now, therefore,

BE IT RESOLVED by the House of Representatives of the Thirtieth Legislature of the State of Hawaii, Regular Session of 2020, that this body requests the Director of Health to convene a working group to conduct a study relating to prescription drug affordability review and rate setting and submit proposed legislation; and

BE IT FURTHER RESOLVED that the study and proposed legislation should include:

(1) the makeup and duties of a commission whose purpose is to collect and review prescription drug pricing information, assess fees to support the commission, and set state program reimbursement rates;

(2) types of prescription drugs to be included;

(3) triggers that would warrant notification and investigation of prescription drug costs, or cost increases;

(4) information that would be required for assessment, considerations for implementation of set rates, and any additional protections needed to maintain confidentiality of such information that may be necessary;

(5) financial need to maintain the commission and sustainability of funding source options; and

BE IT FURTHER RESOLVED that the working group shall consist of the following members:

(1) the Director of Health, or their designee;

(2) the Insurance Commissioner, or their designee;

(3) the Chairperson of the Board of Pharmacy, or their designee;

(4) one representative of Hawaii Pharmacists Association;

(5) one representative of Hawaii Association of Health Plans;

(6) one representative of American Association of Retired Persons; and

BE IT FURTHER RESOLVED that the Director of Health is requested to submit a report of its findings and recommendations, including proposed legislation, to the Legislature no later than twenty days prior to the convening of the Regular Session of 2021; and

BE IT FURTHER RESOLVED that certified copies of this Resolution be transmitted to the Governor, the Lieutenant Governor, and each organization represented by a member of the working group.

	OFFERED BY:	_____________________________

Report Title:

Working Group on Prescription Drug Affordability

HOUSE OF REPRESENTATIVES	H.R. NO.	68
THIRTIETH LEGISLATURE, 2020
STATE OF HAWAII