STAND. COM. REP. NO. 2705

Honolulu, Hawaii

RE: S.B. No. 2009

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2020

State of Hawaii

Sir:

Your Committee on Commerce, Consumer Protection, and Health, to which was referred S.B. No. 2009 entitled:

"A BILL FOR AN ACT RELATING TO HEALTH,"

begs leave to report as follows:

The purpose and intent of this measure is to place a cap on the amount that an insured is required to pay for a prescription insulin drug at $100 per thirty-day supply of that drug.

Your Committee received testimony in support of this measure from AARP Hawaii and one individual. Your Committee received comments on this measure from the Department of Commerce and Consumer Affairs, Board of Trustees of the Hawaii Employer-Union Health Benefits Trust Fund, and Hawaii Medical Service Association.

Your Committee finds that many Americans are struggling to afford necessary prescription drugs. Hawaii has a high rate of diabetes and many diabetic residents require daily insulin to stay healthy and alive. This measure will help reduce out-of-pocket costs by capping a thirty-day supply of insulin at $100. Your Committee additionally notes that this measure clarifies existing drug benefits and does not mandate a new benefit that would be subject to an impact assessment report.

Your Committee has amended this measure by:

(1) Clarifying that the $100 cost-share limit shall apply to in-network purchases of prescription insulin drugs covered under the health insurance policy or contract's formulary;

(2) Clarifying that this measure shall be exempt from the Auditor's impact assessment report requirement under section 23-51, Hawaii Revised Statutes;

(3) Inserting an effective date of July 1, 2050, to encourage further discussion; and

(4) Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

As affirmed by the record of votes of the members of your Committee on Commerce, Consumer Protection, and Health that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2009, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2009, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Commerce, Consumer Protection, and Health,

________________________________

ROSALYN H. BAKER, Chair