Gov. Matt Meyer joined a group of Democratic legislators and state officials to put his support behind two pieces of legislation that he said will reduce healthcare costs in Delaware.
The announcement comes of the heals of the state's report last week, that it healthcare spending had exceeded benchmarks set once again.
Meyer said compounding factors, like a drop in federal funding in Medicaid, increasing older population in the state, and inflation all contribute to the problem.
"When a medical emergency happens, families find themselves with a large bill that they often cannot pay," Meyer said.
One bill, SB 13, sponsored by Senator Marie Pinkney (D-Bear), is geared to improving standards for the 'charity care' that Delaware's nonprofit hospitals provide.
Delaware's largest hospital systems are all nonprofit operations, which federal rules require to have to have financial assistance policies. But it doesn't include specific financial thresholds.
And ChristianaCare, the state's largest nonprofit hospital system, continually reported hikes in revenue but also decreased financial support for its low income care recipients, according to reporting from Spotlight Delaware.
Delaware announced a medical debt forgiveness plan for Delaware residents last year. And Meyer said in the course of its administration, the state found many people qualified for existing hospital charity care.
"So as a first step, we want to make sure we're bridging that gap," Meyer said.
The bill also standardizes charity care requirements and outreach across the state's hospitals.
Delaware's current law requires aid for people at 350% of the federal poverty limit. Under the bill, Delaware residents at or below 300% of the federal poverty level will get full financial assistance with medical costs.
And it also creates staggered aid for people at 350-500% of the federal poverty limit.
Meyer also put support behind SB 313, sponsored by State Sen. Spiros Mantzavinos (D-Elsmere) This piece of legislation puts a 2-year moratorium of private equity ownership of Delaware hospitals.
None of Delaware’s hospitals that provide acute care are currently owned by a private equity company. But Meyer said it will prevent closures like the Crozer Health system in Delaware County Pennsylvania– which was acquired by a private equity group in 2016 and filed for bankruptcy within less than 10 years.
Both bills, introduced Tuesday, await committee consideration.
