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Committee approves measure to give DHS more flexibility negotiating with pharmacy benefit managers
Summary
Lawmakers passed HB 2224 with amendments to allow the Department of Human Services greater authority in dealing with pharmacy benefit managers, a change supporters said would protect local pharmacies and potentially lower drug costs.
The House Committee on Human Services voted Feb. 12 to pass HB 2224 with amendments, a bill that gives the Department of Human Services greater flexibility to negotiate with pharmacy benefit managers (PBMs) on behalf of Medicaid beneficiaries.
Supporters — including an expert witness identified as Dr. Lewin and the Hawaii Pharmacists Association’s executive director, Corey Sanders — argued PBMs sometimes limit access to local pharmacies, restrict formularies and can create barriers to obtaining medications. "Without PBMs oftentimes [they] prohibit access to local pharmacies and small places," a witness said, and proponents told lawmakers that giving DHS authority could protect local pharmacists and beneficiaries.
Meredith Nichols of DHS said the department stood on written testimony and appreciated the preceding testimony. Committee members asked about a prior restriction created under Act 4 (2005) and how current law constrains DHS; witnesses said the bill would remove statutory barriers to future agency action. The committee adopted technical amendments and passed the measure with the chair noting the committee’s recommendation was adopted.
HB 2224 passed the committee with amendments; the committee recorded the passage under chair recommendation and noted an excused absence for a member.
