HB 18 Summary

• Establishes maximum wholesale prices for the 250 most costly prescription drugs in Hawaii, based on Canadian drug pricing from Ontario, Quebec, British Columbia, and Alberta drug benefit programs.

• Prohibits state entities, health plans, and participating ERISA plans from purchasing referenced drugs above the established maximum price, and prohibits pharmacies from purchasing these drugs above that rate for covered individuals.

• Requires the Insurance Commissioner to annually compile the list of 250 drugs subject to price limits and publish expected savings by August 1 each year.

• Prohibits drug manufacturers and distributors from withdrawing drugs from Hawaii markets to avoid price limitations, with $500,000 fines or penalties equal to annual savings, whichever is greater.

• Requires any savings from lower drug prices to be used to directly reduce costs for consumers, with entities reporting annually to the Insurance Commissioner on savings achieved; effective July 1, 2021.