SB2027

Report Title:

Prescription Drugs; Special Fund; Blue Ribbon Committee

Description:

Creates special fund to hold Medicaid prescription drug rebates to State, to be earmarked for prescription drug program for uninsured or for S-CHIP program; directs governor to convene a blue ribbon committee to determine how to utilize funds and to submit proposal to legislature.

THE SENATE	S.B. NO.	2027
TWENTY-FIRST LEGISLATURE, 2002
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 section to be appropriately designated and to read as follows:

"§328- Medicaid prescription drug rebate special fund. (a) There is established within the state treasury the Medicaid prescription drug rebate special fund into which shall be deposited all moneys received by the State as rebates from pharmaceutical manufacturers for payments made by the State for prescription drugs for Medicaid patients.

(b) The fund shall be used:

(1) To implement a state subsidized system to provide prescription drug coverage for uninsured persons; and

(2) For the State's children's health insurance program.

SECTION 2. The department of human services shall deposit into the Medicaid prescription drug rebate special fund the State's portion of all Medicaid rebate funds received since July 1, 2001, that have not been deposited into the state general fund before the effective date of this Act.

SECTION 3. The governor shall establish a committee to develop a plan to provide subsidized prescription drug coverage to uninsured senior citizen residents of the State. The plan shall be funded by the Medicaid prescription drug rebate special fund, and shall be submitted to the legislature at least twenty days prior to convening of the 2003 regular session.

SECTION 4. New statutory material is underscored.

SECTION 5. This Act shall take effect upon its approval.

INTRODUCED BY:	_____________________________