Two houses OK bills to cut cost of medicine

By Lynda Arakawa
Advertiser Capitol Bureau

The state House and Senate yesterday passed separate versions of a bill aimed at reducing prescription drug costs.

Each measure will now cross over to the other house for further review. Widespread support yesterday indicated strong chances of the legislation's becoming law.

The bills would fine-tune a law — scheduled to take effect in July — intended to create a state purchasing pool to buy medicine at discounts and pass the savings on to consumers.

Senate Bill 3237 and House Bill 2005 would restrict the state program, called Hawai'i Rx Plus, to people who earn no more than 3 1/2 times the federal poverty level. That would be about $75,880 for a family of four and $37,450 for a single person.

Senate Consumer Protection and Housing Committee Chairman Ron Menor, D-17th (Mililani, Waipi'o), said the legislation would help about 300,000 residents.

Beginning July 1, eligible residents would be given a discount card that would entitle them to Medicaid discounts — saving 15 percent to 60 percent of costs, according to proponents — at participating pharmacies. The following year, the state, using participants as leverage in a purchasing pool, would negotiate supplemental rebates with drug manufacturers and pass additional savings to consumers.

The House vote was 49-0 for passage. The Senate vote was 23-1.