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Thursday, August 23, 2001



Hawaii State Seal


Hearings start
tomorrow on high
price of drugs


Richard Borreca
rborreca@starbulletin.com

Seniors and their families know about the high cost of prescription drugs, but few state officials have a handle on how to curb soaring prices.

State Sen. Ron Menor (D, Mililani), chairman of the Senate Commerce and Consumer Protection Committee, starts a round of hearings tomorrow on ways to cut costs of prescription drugs.

"We will be looking at the causes and what other states have done," Menor said.

The state House suggested a drug discount program earlier this year that would save participants about 15 percent on their drug costs, according to supporters.

The issue has been gaining ground since last year's race for president when former Vice President Al Gore attacked George W. Bush's prescription drug plan.

Last March, however, Menor spiked the House plan, saying more study was needed before the state attempts to intervene in prescription drug pricing.

At the time, Jennifer Diesman, government relations manager for the Hawaii Medical Service Association, explained that her organization already negotiates a 4 percent discount on prescription drugs for its 500,000 members. She said she did not see how the state could negotiate a better deal with a smaller pool of participants.

Menor said he waited for the federal government to act, but now doubts that Congress will be able to fashion a viable plan.

"I felt we should let the federal government take the lead in the area, but from what I have been reading and studying, there are a lot of uncertainties," Menor said.

Hawaii's hearings join a list of investigations by states looking into the problem. Already under consideration in other states are price controls, price subsidies and other schemes.

John Rother, national director of legislation and public policy for the American Association of Retired Persons, is expected to testify at tomorrow's hearing, scheduled at 2 p.m. in Room 16 of the state Capitol.

Other hearings will be held Sept. 4 at the Hilo County Council Chambers, Sept. 6 at Kealakehe High School Library in Kailua-Kona, Sept. 6 at Lihikai School in Kahului and Sept. 12 at the Kauai County Council Chambers in Lihue. Those hearings will start at 6 p.m.



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