Governor Matt Meyer passed three healthcare cost reform bills Tuesday, two of which he put early support behind during the legislative session.
One of these, SB 313, creates a moratorium on private equity ownership of Delaware’s hospitals.
And SB 13 standardizes charity care practices for Delaware’s nonprofit hospitals. According to a 2022 survey, an estimated 100 million Americans had medical debt then. It said most medical debt is incurred through hospital care.
Under the new charity care law, Delaware residents at or below 300% of the federal poverty level will get full financial assistance with medical costs. Those who make 300 to 400% of the federal poverty limit get a 75 to 50% discount on care.
Meyer joined the bill sponsors in Wilmington at the Henrietta Johnson Medical Center for a ceremonial signing.
Meyer said while the bill does require more commitment from the state's nonprofit hospitals to charity care, it also creates clarity for providers who consider coming to the state.
"The charity care standards of different hospitals before we introduced this bill were all over the place," Meyer said. "And this standardizes them. So anyone looking at coming in knows, 'hey, here's the rules.'"
Meyer also signed an initially controversial measure, SB 1, requiring 11.5% of insurers' medical spending be on primary care. This is an extension of a policy Delaware passed previously, that was set to sunset. This provision in the bill takes effect immediately.
The legislation also establishes Medicare-based limits on reimbursements to hospitals that will start to take effect in 2029.
Sen. Bryan Townsend authored the bill and said it’s hard to predict exact results, but it is possible to track effectiveness. Factors to follow over the next few years include money spent on primary care and, "more providers staying open or deciding to come to Delaware in the first place."
And for the Medicare-based limits on spending he said to follow and track, "the costs that hospitals are charging to various health plans."
The rule exempts Medicare-Dependent Rural Hospitals from the reference-based pricing, which would apply to Beebe health in Sussex county.
