HI HB1240

Establishes reimbursement rates for brand name prescription medications at average wholesale price plus 40%, and generic medications at average wholesale price plus 60%, with exceptions for direct carrier-provider contracts.

Requires repackaged or relabeled medications to be reimbursed based on the average wholesale price of the original manufacturer's underlying medication plus the applicable percentage (40% or 60%).

Sets reimbursement for compounded medications as the sum of average wholesale prices for each ingredient with a national drug code, plus 40%.

Provides that if original labeler or manufacturer information for repackaged or compounded medications is unknown, reimbursement shall be based on the most reasonable and closely related average wholesale price.

Takes effect July 1, 2013, and applies to Hawaii's workers' compensation insurance system for medical care, services, medication, and supplies provided to injured employees.