HomeMy WebLinkAboutCOM 0243.006 2002-2004
FOR IMMEDIATE RELEASE Contact: Oftice of Senator Ron Menor
June 3, 2003 Phone: (808) 586-6740
Maine Unveils Enhanced Version of Rx Program Used as Model by Hawaii
Hawaii Rx Program Co-Author Calls for "Hawaii Rx Plus Program "
Honolulu, HI -Maine Governor John Baldacci announced a new prescription drug benefit plan
this past Friday, May 30, and sent it to the Maine legislature. His plan comes on the heels of a
recent Supreme Court decision in the Maine Rx case. The new initiative, Maine Rx Plus, makes
several improvements to the original statute, on which the Hawaii Rx Program is based, including
a provision for even greater discounts than those envisioned by the old law.
After participating in a conference call at the AARP Honolulu office with the Maine officials
responsible for overseeing and administering the Maine Rx Program, Senate Commerce,
Consumer Protection and Housing Chair Ron Menor called for the drafting of legislation that
would incorporate the improvements unveiled in the Maine Rx Plus Program into the Hawaii
program, with the intention of seeing such legislation ready in time for the 2004 session of the
Hawaii legislature.
According to Menor, who helped establish the Hawaii Rx Program, "Officials of the Maine
Department of Human Services and the Maine Attorney General's office provided me with an
update on important changes to Maine's program in the aftermath of the U.S. Supreme Court's
decision, which affirmed the validity of the program. They also shared insights as to how Hawaii
should proceed in implementing a similar program here."
Menor stated, "The most important thing they shared with me was that they are moving full speed
ahead with the implementation of their program. The Maine Rx Plus program amends and
enhances the state's original law and addresses concerns raised in the recent Supreme Court
opinion. Specifically, it adds an income limit of 350 percent of the federal poverty level for
participants in the Maine Rx Plus. This change to the Maine Rx Program addresses a criticism
noted in the U.S. Supreme Court decision regarding the fact that the original program did not
have an income restriction."
State AARP Executive Director Greg Marchildon noted Governor Lingle's intention of creating a
task force to look at various options to deal with Hawaii's prescription drug cost for the uninsured
or underinsured. However, according to Marchildon, instead of conducting more studies, the state
administration should work closely with the legislature to implement Hawaii Rx, which would
enable residents to participate in a statewide purchasing pool for whom the state would negotiate
with drug companies [o obtain discount pricing on pharmaceuticals.
"Hawaii's consumers deserve the kind of effective and comprehensive solution Maine is
pursuing," Marchildon said, "and not more studies. The legislature through the leadership of
Senator Menor and Representative Roy Takumi spent two years conducting a careful analysis of
other state programs during 2001 and 2002 and concluded that the policy options are, in fact,
quite limited and boil down to a choice between programs that incorporate rebates from drug
companies and those that provide coverage solely from taxpayer funds. The latter were extremely
expensive and certainly would not be a viable option for Hawaii given our current budget
situation.
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Press Release
Hawaii Rx Program
"During our analysis, it became obvious the programs modeled on the Maine programs, Healthy
Maine and Maine Rx, would provide the best solutions at the least cost to Hawaii's taxpayers.
There is a third option: drug company-sponsored programs, like Governor Lingle's Prescription
Care Program. However, because of the severe restrictions on participation and the complexity of
securing and maintaining eligibility, these only serve a fraction of the people in need of coverage.
While they can play a limited role, they cannot really be viewed as a viable alternative. In
addition, they are not permanent programs, and we need lasting, long-term solutions."
According to Menor and Marchildon, the Hawaii Rx Program could serve approximately 220,000
residents. If the Hawaii program follows the Maine experience, it could result in discounts of
between 15 to 60 percent off the retail prices of prescription drugs.
Menor added, "Given the recent developments in the state of Maine, Hawaii should follow suit
and move to implement our own Rx program. As Maine officials reaffirmed for me, in spite of
legal hurdles that will still have to be addressed, the recent U.S. Supreme Court decision clearly
gives states such as Hawaii the green light to move ahead with our own program."
"My own analysis in reading the Supreme Court decision is that it does provide a solid basis for
Hawaii to begin proceeding with its own program. For example, the court rejected two
constitutional challenges by the drug companies to the Maine Rx Program that could have
furnished the basis for similar challenges to Hawaii's program. Moreover, in response to the drug
company's contention that Maine Rx violated the federal Medicaid law, a significant number of
the justices agreed with Maine [hat the program did not conflict with and in fact furthered [he
goals of Medicaid."
He added, "instead of more studies, during the interim the governor and legislature should pursue
the following:
1. Work on legislation to enhance Hawaii Rx, including changes to our program similar to those
that Maine is making to its program:
• Put in an income I imit to address the Supreme Court's concerns
• Provide funding for full implementation
• Expand access to discounted prescription drugs
• Adopt new cost-saving measures that will dramatically reduce the cost of the program
2. Have the necessary legislation ready to introduce by the beginning of the 2004 session.
3. Begin ongoing consultation with Maine officials to ensure we incorporate the lessons they are
learning as they precede us in implementing their own program.
Marchildon added, "AARI' supports Senator Menor in his efforts to drafr legislation that will
benefit Hawaii s consumers and we look forward to working together with him and other
legislators to make Hawaii Rx a reality."
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