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Committee advances telepharmacy bill after heated testimony from Lanai and Molokai stakeholders
Summary
The House Committee on Consumer Protection and Commerce voted to pass SB 12 79 SD2 HD1, a bill concerning telepharmacy and related pharmacy contracting arrangements, after extensive testimony from rural island pharmacists, health centers and the Board of Pharmacy. The committee said it will convene parties to resolve outstanding disputes.
The House Committee on Consumer Protection and Commerce voted to pass SB 12 79 SD2 HD1 as introduced after extended public testimony from Lanai, Molokai and statewide stakeholders and an exchange with the Board of Pharmacy.
The measure drew testimony from multiple island providers and patient-advocacy groups about the impact of telepharmacy and the federal 340B drug-pricing program on small, on‑island pharmacies. Romy Glidewell, health care division administrator for the Department of Corrections and Rehabilitation, told the committee the department supports the bill and wants the option to “interact via telehealth” with Mainland pharmacists because the department’s bulk pharmacy is on the Mainland.
Eric Avi, testifying for the Hawaii Primary Care Association, described the financial impact on Lanai patients under current arrangements. He said that in February 2024 Lanai Community Health Center filled more than 4,000 prescriptions; about 1,781 of those were for uninsured or underinsured patients and, using a sliding fee scale, the difference in retail cost compared with the center’s discounted charges totaled about $374,020.71, or roughly $210 per prescription.
Board of Pharmacy Chair Alana Isobe opposed the bill in part on safety grounds and said the board had received error reports from the prior pilot project. When asked about harm, Isobe said the pilot project participants “claim nobody was harmed,” but that errors (wrong dose, wrong strength, wrong patient) were reported and were part of the board’s concern.
Local pharmacists and residents from Lanai and Molokai urged the committee to protect face‑to‑face community pharmacies. Kurt Schuster, owner of Rainbow Pharmacy on Lanai, said his business is integrated into the community and pledged continued service: “We have a pharmacy here, and…we're still gonna be here to help everyone.” Resident Roger Alpensil highlighted language and accessibility benefits, saying the local pharmacy provides in‑person support for kupuna and non‑English speakers.
Representatives for Molokai Drugs described logistics challenges from mail‑order pharmacies, including delayed deliveries and temperature exposure for temperature‑sensitive medicines, and said their island had operated without a 340B pharmacy in recent years. Testimony from Molokai noted that local post office hours and mail delays have sometimes left patients without timely access to medication.
Committee members pressed the Board of Pharmacy and health-center representatives about prior pilot‑project error reports, verification of harm, and whether patients could easily choose to fill prescriptions at a local pharmacy. The board said the pilot project, which lasted longer than intended, reported errors and that concern over those errors contributed to ending the pilot.
After public testimony and member questions the committee’s chair said she would convene the parties to resolve the disputes but recommended the committee pass the bill “as is for now.” Members registered votes with reservations; the recommendation was adopted and the bill advanced.
The committee said it will arrange follow-up meetings among the board, community pharmacies and the health center to identify administrative or contractual solutions and to try to avoid further litigation or unintended impacts on community pharmacies.
