HB 1539: Mail Order Pharmacies; Community Retail Pharmacies; Prohibitions

A BILL FOR AN ACT

relating to prescription drugs.

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

     SECTION 1.  The legislature finds that allowing for meaningful choice in how consumers access prescription medication has numerous benefits, including cost savings, convenience, and improved medication adherence.

     As Hawaii residents continue to face economic hardship, the legislature finds that there is an obligation to explore all opportunities for cost savings, especially those that do not compromise quality or access to care.  Mail-order pharmacies can reduce copayments by thirty-three per cent, improve adherence to maintenance medications, and help address retail shortages that often force patients to pay for higher-cost brand-name drugs or visit multiple locations.  These savings also extend to employer groups that pay a significant share of health plan premiums under the Prepaid Health Care Act.

     With evolving technology, these potential cost savings and conveniences can be passed on to consumers while preserving their ability to choose how they receive their medications.  By expanding access to use of mail order pharmacies, the State will be better able to improve access, lower prescription drug costs, and support better health outcomes.

     Accordingly, the purpose of this Act is to repeal certain prohibitions on the imposition of fees, conditions, or requirements on community retail pharmacies that are not imposed on mail order pharmacies.

     SECTION 2.  Section 431R-3, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

     "(b)  A prescription drug benefit plan, health benefits plan under chapter 87A, or pharmacy benefit manager who has entered into a contractual retail pharmacy network agreement with a retail community pharmacy shall not:

     (1)  Require a beneficiary to exclusively obtain any prescription from a mail order pharmacy;

    [(2)  Impose upon a beneficiary utilizing the retail community pharmacy a copayment, fee, or other condition not imposed upon beneficiaries electing to utilize a mail order pharmacy;

     (3)  Subject any prescription dispensed by a retail community pharmacy to a beneficiary to a minimum or maximum quantity limit, length of script, restriction on refills, or requirement to obtain refills not imposed upon a mail order pharmacy;

     (4)  Require a beneficiary in whole or in part to pay for any prescription dispensed by a retail community pharmacy and seek reimbursement if the beneficiary is not required to pay for and seek reimbursement in the same manner for a prescription dispensed by a mail order pharmacy;

     (5)] (2)  Subject a beneficiary to any administrative requirement to use a retail community pharmacy that is not imposed upon the use of a mail order pharmacy; or

    [(6)] (3)  Impose any other term, condition, or requirement pertaining to the use of the services of a retail community pharmacy that materially and unreasonably interferes with or impairs the right of a beneficiary to obtain prescriptions from a retail community pharmacy of the beneficiary's choice."

     SECTION 3.  This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

     SECTION 4.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

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

Report Title:

Mail Order Pharmacies; Community Retail Pharmacies; Prohibitions

Description:

Repeals certain prohibitions on the imposition of fees, conditions, or requirements on community retail pharmacies that are not imposed on mail order pharmacies.

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.