Initially controversial legislation aimed at reducing consumer spending on healthcare moved through the State Senate with minimal debate– and public support from the state’s largest healthcare lobbying group.
The bill includes requirements for increased investment in primary care and cost controls. The version that cleared the Senate Tuesday reflects negotiations with hospital stakeholders since it was introduced in March.
The Delaware Healthcare Association opposed the bill initially. DHA president Brian Frazee said a provision to eventually put a price cap on what hospitals could charge for inpatient and outpatient care was a “sticking point” that’s been negotiated.
"There's a longer pathway to get to 250% of Medicare and additional flexibility that recognized the different hospitals throughout the state and the different populations that they serve," Frazee said.
The new bill requires Delaware’s Department of Insurance to regulate hospital pricing based on Medicare Reference-Based Pricing Targets. This takes inflationary costs like labor into account when setting and adjusting targets.
It also creates more leeway for providers to base prices on whether care is received in a doctor’s office, inpatient facility, or emergency care. The earliest provisions in the bill would go into effect this year with the rest phased in. It now heads to the House for consideration.
