STAND. COM. REP. NO. 33^^
Honolulu, Hawaii
APR a 1 2024
RE: S.R. No. 67
S. D. 1
Honorable Ronald D. Kouchi
President of the Senate
Thirty-Second State Legislature
Regular Session of 2024
State of Hawaii
Sir:
Your Committee on Health and Human Services, to which was
referred S.R. No. 67 entitled:
"SENATE RESOLUTION URGING THE DEPARTMENT OF HEALTH TO EXPLORE
AVENUES TO ENSURE CONTINUED ACCESS TO AFFORDABLE MEDICATIONS
FOR THE STATE'S UNDERSERVED POPULATIONS UNDER THE 34OB DRUG
PRICING PROGRAM AND URGING HAWAII’S CONGRESSIONAL DELEGATION
AND RELEVANT FEDERAL AGENCIES TO MONITOR PHARMACEUTICAL
COMPANIES AND TAKE APPROPRIATE ACTIONS TO PROTECT THE
INTEGRITY OF THE 340B DRUG PRICING PROGRAM,"
begs leave to report as follows:
The purpose and intent of this measure is to:
(1) Urge the Department of Health to explore avenues to
ensure continued access to affordable medications for
the State's underserved populations under the 340B Drug
Pricing Program; and
(2) Urge Hawaii's congressional delegation and relevant
federal agencies to monitor pharmaceutical companies and
take appropriate actions to protect the integrity of the
340B Drug Pricing Program.
Your Committee received testimony in support of this measure
from the Healthcare Association of Hawaii, Hawai‘i Primary Care
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53^
Association, Wahiawa Center for Community Health, and Waianae
Coast Comprehensive Health Center.
Your Committee received testimony in opposition to this
measure from the Pharmaceutical Research and Manufacturers of
TXmerica.
Your Committee finds that the federal 340B Drug Pricing
Program (340B Program) was established in 1992 to help shield
health care facilities serving low-income and vulnerable
populations from high and ever-rising drug costs, and to ensure
that they can continue to provide expanded services to those
under-served populations. Specifically, the 340B Program requires
pharmaceutical manufacturers to provide a discount on outpatient
drugs to eligible facilities (340B hospitals) for the
manufacturers' medications to be covered by Medicaid. However, in
recent years, pharmaceutical companies have been intentionally
undermining the purpose of the 34OB Program by imposing
restrictions on the contracted pharmacies that 340B hospitals may
utilize for their patients to access their prescription
medications.
Your Committee notes concerns raised in testimony that not
only the Department of Health but also the Department of Human
Services administers the 340B Program, and therefore, this measure
should be directed to the Governor, rather than just the
Department of Health, to ensure that both state agencies work
together to safeguard the integrity of the 340B Program. Your
Committee further notes testimony noting the importance of this
measure including references to federally qualified health centers
(FQHCs), since FQHCs are essential partners to the 340B Program
through which a large number of residents receive program
discounts. Therefore, there is a need to amend this measure to
reflect these concerns.
Accordingly, your Committee has amended this measure by:
(1) Urging the Governor, rather than the Department of
Health, to ensure that relevant state agencies,
including the Department of Health and Department of
Human Services, collaborate to:
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(A) Explore avenues to collaborate with 340B hospitals
and FQHCs, community pharmacies, and other
stakeholders to ensure the continued accessibility
to affordable medications for underserved
populations in Hawaii; and
(B) Work with pharmaceutical companies to ensure that
the companies uphold their commitment to patient
access to affordable pharmaceuticals by refraining
from implementing restrictions that undermine the
ability of 340B hospitals and FQHCs to serve their
patients and communities;
(2) Inserting language to include federally qualified health
centers (FQHCs) as part of the covered entities
participating in the 340B Drug Pricing Program;
(3) Amending its title to reflect its amended purpose; and
(4) Inserting as additional recipients of its certified
copies, the Governor, Director of Human Services, and
Administrator of the Centers for Medicare and Medicaid
Services.
As affirmed by the record of votes of the members of your
Committee on Health and Human Services that is attached to this
report, your Committee concurs with the intent and purpose of S.R.
No. 67, as amended herein, and recommends its adoption in the form
attached hereto as S.R. No. 67, S.D. 1.
Respectfully submitted on
behalf of the members of the
Committee on Health and Human
Services,
2024-2327 SR SSCR SMA.docx
 The Senate
Thirty-Second Legislature
State of Hawai‘i
Record of Votes
Committee on Health and Human Services
HHS
Bill / Resolution No.:* Committee Referral: Date:
HVAS 03I12/202.H
The Committee is reconsidering its previous decision on this measure.
If so, then the previous decision was to:___________________________________
The Recommendation is:
Pass, unamended ‘^^Pass, with amendments Hold Recommit
2312 2311 2310 2313
Members Aye Aye (WR) Nay Excused
SAN BUENAVENTURA, Joy A. (C)
AQUINO, Henry J.C. (VC)
KEOHOKALOLE, Jarrett
SHIMABUKURO, Maile S.L.
AWA, Brenton
TOTAL
Recommendation:
LJ^dopted __ Not Adopted
Chair’s or Designee’s Signature;^—
Distribution: Original Yellow Pink Goldenrod
File with Committee Report Clerk's Office Drafting Agency Committee File Copy
*Only one measure per Record of Votes
Revised: 12/27/23