Committee advances pharmacy-audit reform bill after rural-pharmacy and insurer testimony

The House Committee on Health voted to advance House Bill 16-43, which would specify a framework for audits of pharmacists and pharmacies. The bill drew extensive testimony from state agencies, insurers and representatives of independent pharmacies.

Michael Burke of the Department of Health stood on written testimony. Christopher Fernandez, executive officer of the Board of Pharmacy, said the board supported the bill's intent but raised consumer-protection and patient-care concerns about the audit burden. HMSA questioned how state provisions would align with forthcoming federal PBM reforms; Corey Sanders of the Hawaii Pharmacists Association said federal reforms do not take effect until 2028–29 and that a state framework is needed now to protect independent pharmacies that serve remote communities.

Owners of rural pharmacies described frequent audits, short turnaround times and operational burdens. "We are audited almost every week by PBMs and insurance companies," said Kimberly Mikami Sveton for Molokai Drugs, urging relief for rural providers.

The chair adopted amendments to require electronic notice before audits, extend the period to address discrepancies to 60 days, allow audits in HIPAA‑compliant areas outside the prescription department and make other technical changes. The committee voted to pass the bill with amendments and send it forward as a house draft.