Delaware Governor Signs Three Bills to Improve Healthcare Affordability and Access
TL/DR –
Governor of Delaware, Matt Meyer, signed three bills to lower healthcare costs, expand access to care, and prevent private equity ownership of Delaware hospitals. Senate Bill 1 makes it obligatory for state-regulated insurers to spend at least 11.5% of their medical costs on primary care and introduces a phased cap on hospital charges. Senate Bill 13 sets the highest statewide free care threshold in the US for patients earning less than 300% of the federal poverty level, while Senate Bill 313 establishes a two-year moratorium on for-profit entities gaining control of Delaware health systems.
Delaware Governor Signs Three Bills for Healthcare Improvement
Last week, Delaware Governor Matt Meyer enacted three bills, Senate Bill 1, Senate Bill 13, and Senate Bill 313, to lower healthcare costs, broaden care accessibility, and protect Delaware hospitals from takeover by private equity. These bills collectively formulate a robust strategy for enhancing healthcare affordability in Delaware.
Senate Bill 1 aims to bolster primary care and decrease long-term hospital expenses. It enforces a permanent requirement for state-regulated insurers to allocate a minimum of 11.5 percent of their medical expenses to primary care. The bill encourages doctors to prioritize patient health over service quantity by implementing reward-based payment models. It also introduces a gradual limit on hospital charges, capping them at 250 percent of Medicare rates by 2033 for state employee plans and fully-insured commercial schemes. Exceptions are made for hospitals engaging in multi-payer, value-based care and certain rural or specialty hospitals.
Senate Bill 13 standardizes and extends hospital charity care across Delaware. Under this bill, patients earning less than 300 percent of the federal poverty level may be eligible for free care, regardless of their insurance status. This sets a record for the highest statewide free care threshold in the nation. Furthermore, discounted care provisions may apply to patients earning less than 400 percent of the federal poverty level. Additional assistance is available for those under 500 percent if hospital costs surpass 10 percent of household income. With automatic financial assistance screening, the law sets some of the strongest patient protections in the country.
Senate Bill 313 imposes a two-year moratorium until July 1, 2028, on for-profit entities taking over Delaware health systems. This bill aims to safeguard affordability, accessibility, and quality as the state collaborates with community members and the General Assembly for a more permanent solution. Delaware becomes the second state to implement such a moratorium, and the only one actively prohibiting private equity hospital ownership.
“This bill package ensures hospitals prioritize patients over profits. It moves us towards a healthcare system that provides high-quality, accessible care while reducing costs,” stated Governor Meyer. Senate Majority Leader Bryan Townsend, sponsor of Senate Bill 1, shared his views, “Every Delawarean deserves affordable healthcare that prioritizes primary, preventative care. Senate Bill 1 will help lower costs and create a healthcare system that values patients more than profits.”
These bills augment the Meyer administration’s broader affordability agenda, which includes prior initiatives to mitigate medical debt and safeguard Delaware families from escalating costs.
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