Hawaii State Lawmakers Propose Prescription Drug Discount Plan

Hawaii state House lawmakers have proposed a drug discount program (HB 47) that would save participants about 15% on their drug costs, the Honolulu Advertiser reports. Under the plan, state-hired experts would negotiate with pharmaceutical companies to develop a list of discounted prices for those enrolled in the program. Local pharmacies would sell drugs to members at discounted prices, and pharmaceutical companies would pay the state rebates based on the amount of drugs purchased through the program. The state would send the rebates to local pharmacies. State Rep. Roy Takumi (D), one of the bill's sponsors, said that all state residents could enroll in the program, but added that the state's 220,000 residents who lack drug coverage and those with high prescription costs would receive the "biggest" benefit.

'Worthwhile' Proposal?
Jennifer Diesman, government relations manager for the Hawaii Medical Service Association, the state's largest health insurer, said that the organization negotiates a 4% discount on prescription drugs for its 500,000 members, adding that "it isn't clear how the state could negotiate a better deal" with a smaller pool of participants. Takumi, who says that pharmaceutical firms "grossly overcharge" the uninsured for medicine, said that even a 10% discount "would be worthwhile." Todd Inafuku, executive director of the Hawaii Pharmacists Association, also expressed reservations about the legislation, telling lawmakers "to be sure" that the state "promptly" sends rebates to pharmacists. The House likely will vote on the bill this week (Dayton, Honolulu Advertiser, 3/5).