HB 205: RELATING TO WORKERS' COMPENSATION.

A BILL FOR AN ACT

RELATING TO WORKERS' COMPENSATION.

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

     SECTION 1.  The legislature finds that the State's existing reimbursement rates for nonprescription drugs, over-the-counter drugs, or nonlegend drugs for workers' compensation are not clearly provided.  The legislature further finds that this omission has led some to charge inflated rates for these drugs, which drives up the cost of workers' compensation insurance policies.

     Accordingly, the purpose of this Act is to establish:

     (1)  Payment rates for nonprescription drugs, over-the-counter drugs, or nonlegend drugs for workers' compensation purposes; and

     (2)  Requirements for the authorization of such payments.

     SECTION 2.  Chapter 386, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

     "§386-     Nonprescription, over-the-counter, or nonlegend drug payments.  (a)  Payment for nonprescription drugs, over-the-counter drugs, or nonlegend drugs shall not exceed cost plus forty per cent.

     (b)  Payment shall not be authorized under this section unless the nonprescription drug, over-the-counter drug, or nonlegend drug has been clinically established as necessary by the provider, or a duly authorized representative, to treat the injured employee for a work injury.

     (c)  Providers may seek reimbursement for any applicable Hawaii general excise tax.

     (d)  For purposes of this section:

     "Nonprescription drug", "over-the-counter drug", or "nonlegend drug", has the same meaning as provided in section 328-1.

     "Provider" means the physician dispensing the nonprescription drug, over-the-counter drug, or nonlegend drug."

     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.  New statutory material is underscored.

     SECTION 5.  This Act shall take effect on July 1, 3000.

Report Title:

Workers' Compensation; Nonprescription Drugs; Payment Limitation

Description:

Establishes a payment rate not to exceed cost plus forty per cent for nonprescription drugs, over-the-counter drugs, or nonlegend drugs for workers' compensation purposes, subject to certain conditions.  Effective 7/1/3000.  (HD1)

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

A BILL FOR AN ACT

relating to workers' compensation.

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

     SECTION 1.  The legislature finds that the State's existing reimbursement rates for nonprescription drugs, over-the-counter drugs, or nonlegend drugs for workers' compensation are not clearly provided.  The legislature further finds that this omission has led some to charge inflated rates for these drugs, which drives up the cost of workers' compensation insurance.

     Accordingly, the purpose of this Act is to establish:

     (1)  Payment rates for nonprescription drugs, over-the-counter drugs, or nonlegend drugs for workers' compensation purposes; and

     (2)  Requirements for the authorization of such payments.

     SECTION 2.  Chapter 386, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

     "§386-     Nonprescription, over-the-counter, nonlegend drug payments.  (a)  Payment for nonprescription drugs, over-the-counter drugs, or nonlegend drugs shall be cost plus forty per cent.

     (b)  Payment shall not be authorized under this section unless the nonprescription drug, over-the-counter drug, or nonlegend drug has been clinically established as necessary by the provider, or a duly authorized representative, to treat the injured employee for a work injury.

     (c)  Providers may seek reimbursement for any applicable Hawaii general excise tax.

     (d)  For purposes of this section:

     "Nonprescription drug", "over-the-counter drug", or "nonlegend drug", has the same meaning as provided in section 328-1.

     "Provider" means the physician dispensing the nonprescription drug, over-the-counter drug, or nonlegend drug."

     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.  New statutory material is underscored.

     SECTION 5.  This Act shall take effect on July 1, 2025.

Report Title:

Workers' Compensation; Nonprescription Drugs; Payment Limitation

Description:

Establishes a payment rate of cost plus forty per cent for nonprescription drugs, over-the-counter drugs, or nonlegend drugs for workers' compensation purposes, subject to certain conditions.

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

STAND. COM. REP. NO.  8

Honolulu, Hawaii

                , 2025

RE:   H.B. No. 205

      H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Madame:

     Your Committee on Labor, to which was referred H.B. No. 205 entitled:

"A BILL FOR AN ACT RELATING TO WORKERS' COMPENSATION,"

begs leave to report as follows:

     The purpose of this measure is to limit the amount an employee has to pay for clinically necessary nonprescription, over-the counter, or nonlegend drugs for workers' compensation purposes.

     Your Committee received testimony in support of this measure from the Department of Labor and Industrial Relations and one individual.  Your Committee received testimony in opposition to this measure from the Hawaii Insurers Council.

     Your Committee finds that a payment rate for nonprescription, over-the-counter, or nonlegend drugs is necessary to limit the rising cost of workers' compensation insurance policies.  Your Committee further finds that the State's unclear reimbursement rates for these drugs causes inflated drug prices, which then increases the cost of workers' compensation insurance policies.  Your Committee believes that this measure will help reduce overall costs by establishing a clear payment rate in statute.

     Your Committee amended this measure by:

     (1)  Clarifying that payment for nonprescription, over-the-counter, or nonlegend drugs shall not exceed cost plus forty per cent; and

     (2)  Changing the effective date to July 1, 3000, to encourage further discussion.

     As affirmed by the record of votes of the members of your Committee on Labor that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 205, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 205, H.D. 1, and be referred to your Committee on Consumer Protection & Commerce.

Respectfully submitted on behalf of the members of the Committee on Labor,