SB 1509 Hawaii Senate · 2025 Regular Session

RELATING TO PRESCRIPTION DRUGS.

Summary

Requires the Legislative Reference Bureau to conduct a study on best practices for the regulation of pharmacy benefit managers and reduction in prescription drug costs for health insurance plan beneficiaries. Requires a report to the Legislature. Effective 12/31/2050. (HD1)

Issues: ✓ Healthcare

Bill status passed 3 of 5 stages cleared

Introduction

Jan 2025

Committee Review

Mar 2025

Senate Passage

Mar 2025

House Passage

Governor

Introduced Jan 22, 2025 Last action Mar 19, 2025

Maddy AI version diff · 2 comparisons

What changed between versions

SB1509_HD1 → SB1509_SD1 · 9 edits

MAJOR

The bill was transformed from a study request into a substantive law requiring health insurers and pharmacy benefit managers to pass rebate savings directly to enrollees. The original version asked the Legislative Reference Bureau to study best practices for regulating pharmacy benefit managers, while the new version mandates that insurers and pharmacy benefit managers reduce patient cost-sharing by at least 100% of rebates received on prescription drugs.

Scope change

The bill's scope expanded from a research study to binding legal requirements for health insurers and pharmacy benefit managers to share savings with enrollees, while also establishing reimbursement standards for pharmacies.

SCOPE

Removed the requirement for the Legislative Reference Bureau to conduct a study on pharmacy benefit manager regulation.

REQUIREMENT

Added mandatory requirement that health insurers share the benefit of rebates with enrollees by reducing cost-sharing by at least 100% of rebates received.

Added mandatory requirement that pharmacy benefit managers share the benefit of rebates with enrollees by reducing cost-sharing by at least 100% of rebates received.

Added requirement for pharmacy benefit managers to submit annual certification to the Insurance Commissioner regarding compliance with cost-sharing requirements.

Added requirement that pharmacy benefit managers reimburse pharmacies at least the national average drug acquisition cost plus a professional dispensing fee.

Added prohibition on pharmacy benefit managers offering lower reimbursement rates to non-affiliated pharmacies compared to affiliated pharmacies for the same drugs.

DEFINITION

Added new definitions for 'Health care insurer', 'Pharmacy Benefit Manager', 'Rebate', and 'Price protection rebate'.

ENFORCEMENT

Added confidentiality protections for rebate information while requiring disclosure to the Insurance Commissioner.

TIMELINE

Effective date remains December 31, 2050, but the bill now contains substantive operational requirements rather than just a study timeline.

Floor votes

How they voted

This bill passed the Senate by voice vote (no roll call recorded).

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Mar 14, 2025

Committee

Reported from HLT (Stand. Com. Rep. No. 1233) as amended in HD 1, recommending passage on Second Reading and referral to CPC.

lower

Mar 12, 2025

Lower · Passed

The committee on HLT recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 8 Ayes: Representative(s) Takayama, Keohokapu-Lee Loy, Amato, Chun, Marten, Olds, Takenouchi; Ayes with reservations: Representative(s) Garcia; Noes: none; and 1 Excused: Representative(s) Alcos.

lower

Mar 6, 2025

Committee

Referred to HLT, CPC, FIN, referral sheet 19

lower

Mar 4, 2025

Introduced

Received from Senate (Sen. Com. No. 360) in amended form (SD 1).

lower

Mar 4, 2025

Upper · Passed

Passed Third Reading, as amended (SD 1). Ayes, 25; Aye(s) with reservations: none . Noes, 0 (none). Excused, 0 (none). Transmitted to House.

upper

Feb 24, 2025

Upper · Passed

The committee(s) on CPN recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in CPN were as follows: 3 Aye(s): Senator(s) Keohokalole, McKelvey, Awa; Aye(s) with reservations: none ; 0 No(es): none; and 2 Excused: Senator(s) Fukunaga, Richards.

upper

Feb 24, 2025

Upper · Passed

The committee(s) on HHS recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in HHS were as follows: 4 Aye(s): Senator(s) San Buenaventura, Aquino, Hashimoto, Keohokalole; Aye(s) with reservations: none ; 0 No(es): none; and 1 Excused: Senator(s) Fevella.

upper

Feb 20, 2025

Upper · Passed

The committee(s) on HHS/CPN has scheduled a public hearing on 02-24-25 1:00PM; Conference Room 225 & Videoconference.

upper

Feb 13, 2025

Committee

Re-Referred to HHS/CPN.

upper

Jan 27, 2025

Committee

Referred to HHS, CPN.

upper

Jan 23, 2025

Introduced

Introduced and passed First Reading.

upper

Jan 22, 2025

Introduced

Pending Introduction.

upper

1 primary · 0 co-sponsors