Relating To The Repeal Of Section 328-106, Hawaii Revised Statutes.
The repeal of Section 328-106 removes the requirement for the Department of Health to oversee the contractual arrangements and cost reimbursement processes between PBMs and pharmacies. The legislature acknowledged that this section does not effectively ensure public health safety or fair market practices. It is believed that the functions intended under Section 328-106 might be better accomplished through different regulatory methods or frameworks, potentially shifting to models that engage relevant stakeholders more effectively.
House Bill 1083 aims to repeal Section 328-106 of the Hawaii Revised Statutes, which has previously mandated the Department of Health to regulate certain practices by pharmacy benefit managers (PBMs) related to the cost of prescription drugs. The bill argues that the Department of Health, tasked with protecting public health, is poorly equipped to manage the complexities of insurance-related cost controls. Specifically, the section imposed an inappropriate regulatory burden, requiring enforcement of procedures that PBMs were primarily responsible for, hence misaligning regulatory focus and purpose.
Legislative discussions around the repeal may reveal differing opinions, particularly between stakeholders within the pharmacy and insurance industries. Proponents of the repeal argue that it alleviates unnecessary oversight on the Department of Health, allowing it to concentrate on core public health duties, while critics may concern that the absence of such regulations could lead to unchecked practices by PBMs, adversely impacting pharmacies and pharmaceutical costs for consumers. This contention focuses on finding a balance between necessary regulation and practical governance without overstepping into complex insurance territory.