Hawaii House Bill HB1083

Hawaii 2023 Regular Session

• Introduced: 1/25/23
• Refer: 1/30/23

Caption

Relating To The Repeal Of Section 328-106, Hawaii Revised Statutes.

Impact

By repealing this section, the bill aims to eliminate the regulatory responsibilities imposed on the Department of Health concerning PBM's reimbursement procedures. This shift is anticipated to relieve the department of what is perceived as an inappropriate regulatory burden. Proponents argue that such oversight does not meaningfully protect public health and thus, the market dynamics regarding drug pricing may be better managed through alternative methods rather than via health department regulation.

Summary

House Bill 1083 seeks to repeal Section 328-106 of the Hawaii Revised Statutes, which mandates the Department of Health to supervise pharmacy benefit managers (PBMs) regarding their pricing and reimbursement processes for prescription drugs. The legislative intent is rooted in the belief that regulating PBM practices falls outside the primary health protection mission of the Department of Health. Current regulations burden this department by imposing requirements related to the pharmacy industry's business operations, which are viewed as ineffective and unenforceable under the scope of health regulation.

Contention

The law's repeal has stirred discussions about whether it might adversely affect drug pricing transparency and fairness in the relationship between pharmacies and PBMs. Critics may argue that without regulatory oversight, pharmacies could face challenges in ensuring equitable reimbursement for the costs of prescription drugs, potentially leading to broader implications for drug affordability. Supporters of the repeal retain that the market will adjust adequately without such government intervention, suggesting that the competitive environment will inherently regulate associated costs.