HI HB1960

Establishes price caps on prescription drug reimbursement in workers' compensation and motor vehicle insurance claims at 140% of the average wholesale price published in the Red Book as of the date of dispensing.

Reduces the reimbursement cap to 100% of average wholesale price for prescription drugs not available at major retail pharmacies (defined as having 5+ locations in Hawaii and 10+ in other states) within the state.

Caps reimbursement for compounded medications at 140% of average wholesale price by gram weight of each underlying drug, based on the Red Book pricing at the date of compounding.

Mandates substitution of equivalent generic drugs for brand name pharmaceuticals unless the prescribing physician certifies the injured employee's condition will not tolerate a generic preparation.

Applies drug pricing protections automatically to motor vehicle insurance benefits unless the insurance commissioner modifies them through rulemaking after enactment; takes effect upon approval.