Sponsors of the controversial hospital cost review board bill — also known as HB 350 — have added an amendment that could ease the healthcare community’s opposition.
Delaware hospitals and the Delaware Healthcare Association (DHA) have agreed to withdraw opposition to the controversial hospital cost review board legislation after crafting an amendment with the bill’s sponsors.
In its current form, the bill requires hospitals to not charge more than 250% of the cost of care charged to the Medicare program for 2025 and 2026. After that, the board would begin reviewing budgets.
The new amendment replaces that temporary reference pricing with a new cost containment measure based on the spending benchmark and the Core Consumer Price Index.
The amendment also requires all counties to be represented on the review board, removes penalty provisions for hospitals who fail to adhere to a board-provided budget and adds a public hearing provision.
In a letter to the General Assembly, DHA President & CEO Brian Frazee wrote the forthcoming amendment would evoke a neutral stance on the bill from DHA.
In a statement, Gov. John Carney says he will support the new legisation: "I want to thank the hospital systems, members of the General Assembly, and the Delaware Department of Health and Social Services for collaborating on a piece of legislation that will combat rising health care costs that are having a significant impact on Delaware families and state taxpayers. The revised House Bill 350 will help lower the growth of healthcare costs in our state, while making sure we’re protecting healthcare quality. I look forward to signing it into law.”
The amendment will have to be voted on by the Senate, and if the bill passes with the amendment, it will go back to the House for reconsideration.
