State Sen. Sarah McBride unveils legislation to potentially secure more than $100 million in federal funding for Medicaid.
McBride says her Protect Medicaid Act of 2024 would bring Delaware’s Medicaid program its largest ongoing infusion of federal funding since the Affordable Care Act.
The federal government matches every two dollars a state invests in Medicaid with about three dollars. This bill would require hospitals to assess and pay 3.58 percent of their net patient revenue, which the federal government would also match.
“Some of that money will return to the hospitals, making them whole, ensuring that there is no reason to pass on any of that upfront investment cost on to patients," McBride says. "That then leaves a significant amount of money in that pot from the federal matching funds that then can be used for, essentially, discretionary Medicaid spending.”
McBride later clarified her statement to indicate that hospitals won't be getting all of their money back, but they’ll be “made whole” in the sense that the money will remain in the healthcare system, leading to better patient outcomes and money saved later on.
McBride says discretionary spending could include improving reimbursement rates for providers, expanding coverage, or building out innovative policies.
Westside Healthcare Chief Operating Officer Chris Fraser says for them, that could mean a food and nutritional program or paying for community health workers.
Fraser adds that funding will make a difference for the nearly 1 in 3 Delawareans who receive acute and long-term health care through Medicaid,
“This levels the playing field for people to be able to have a Doula service, to be able to have dental care that they wouldn’t be able to have otherwise or be able to afford, not to mention their day-to-day medical care," Fraser says.
McBride says 44 other states already use hospital assessments to bring in federal funds. Delaware has not been able to get hospital provider support for the plan until now.
Previous attempts to enact this plan failed, McBride noting failed attempts from former Governors Ruth Ann Minner and Jack Markell. ChristianaCare CEO Janice Nevin says McBride’s willingness to collaborate with state healthcare leaders made the difference this time.
And Nevin says McBride's bill supports ChristianaCare's mission.
“There will be no financial impact on patients. I know sometimes people worry about that, this is not that at all. This is very much about having more dollars at the state Medicaid level in order to be able to support those programs that are necessary for good health.”
49 states currently have at least one facility assessment in place, including Delaware, while 34 states and Washington D.C. have three or more provider taxes.
Delaware’s first healthcare facility assessment, sponsored by Sen. McBride’s predecessor Sen. Harris McDowell, signed into law by Governor Jack Markell in 2013, collects revenue from nursing facilities.
But Delaware is one of only six states without a facility assessment on hospitals. Other states have used hospital assessments to increase provider rates, mitigate rate cuts or expand eligibility to more parents and children, for example.
Senate Bill 13 will be officially introduced in the Delaware General Assembly on Tuesday and assigned to the Senate Health and Social Services Committee.
