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Bill > HB562


HI HB562

HI HB562
Relating To Consumer Protection.


summary

Introduced
01/21/2025
In Committee
01/21/2025
Crossed Over
Passed
Dead

Introduced Session

2025 Regular Session

Bill Summary

Prohibits covered entities in the State from entering into contracts with drug manufacturers that limit the covered entities' use of contract pharmacies. Voids contract provisions for certain drugs if the provisions are based on the maximum allowable cost payment model. Authorizes the attorney general to bring a civil action for violations.

AI Summary

This bill aims to protect the 340B drug pricing program in Hawaii by preventing drug manufacturers from restricting healthcare providers' use of contract pharmacies. Specifically, the bill prohibits 340B covered entities (such as nonprofit hospitals, community health centers, and Native Hawaiian health centers) from entering into contracts with drug manufacturers that limit their ability to use contract pharmacies, which are particularly important in rural areas where patients might otherwise struggle to access medications. The bill voids contract provisions based on the maximum allowable cost payment model and authorizes the attorney general to bring civil actions against entities that violate these provisions. By doing so, the legislation seeks to preserve the financial benefits of the 340B program, which allows healthcare providers to reinvest savings into community health services, and ensure that low-income and uninsured populations can continue to access affordable medications. The bill defines key terms like "contract pharmacy" and "340B drug" and will take effect upon approval, though it does not impact rights, penalties, or proceedings that existed before its effective date.

Committee Categories

Health and Social Services

Sponsors (14)

Last Action

Carried over to 2026 Regular Session. (on 12/08/2025)

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