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Gov. Carney seeks buy in from state workers on reducing health care costs

Delaware Public Media
Gov. John Carney

Delaware’s health care spending could reach more than $21 billion by 2025.

Gov. John Carney  (D) told state employees during a town hall Thursday at Delaware State University he needs help in controlling costs.

Carney said Delaware is spending more on healthcare than many other states and getting worse results. Delaware ranked 31st out of 50 states in last year’s America’s Health Rankings report. He said healthcare and education funding makes 60 percent of the state’s budget.

“You either have to raise taxes or cut spending to have a balanced budget," he said. "And when you’re revenue is not keeping up with your expenses, that’s the situation you find yourself.”

The state plans to gather data to determine what the right growth target should be. Secretary of Health and Social Services Kara Odom Walker says they’ll determine the benchmark and then figure out the best way to achieve it.

“Underneath of setting that target, where we start to align the economic incentives, where we start to say ‘We’re going to pay you for the things that matter,’" she said. "And really focus on value. And also get to that threshold collectively of reducing cost.”

Carney said reducing healthcare costs could allow the state to hire new workers or raise wages. Delaware hopes to develop and implement a new service delivery and payment model in the next three years. It’s in the planning stages right now.

Carney pointed out that slowing the rate of healthcare spending could allow the state to hire more workers and pay higher wages. He notes in recent years the number of state employees has gone down by about 800, but school enrollment increases have raised spending on education personnel.

State officials said using an urgent care instead the emergency room and taking advantage of free preventive services are among the ways for both state employees and Delaware can save money.