DELAWARE — Gov. Matt Meyer signed three healthcare bills into law Monday that supporters say will lower healthcare costs, expand access to care and strengthen Delaware's healthcare system after months of negotiations over the legislation.
The package includes Senate Bill 1, which caps certain hospital reimbursement rates and increases investment in primary care; Senate Bill 13, which establishes new statewide standards for hospital financial assistance and medical debt collection; and Senate Bill 313, which places a moratorium on nonprofit hospital acquisitions by for-profit entities, including private equity firms.
Speaking at Henrietta Johnson Medical Center, Meyer said the legislation is designed to make healthcare more affordable for Delawareans.
"No one should choose between growing broke and getting care," Meyer said.
He said Senate Bill 1 will help transition Delaware's healthcare system "away from fee-for-service and toward value-based care that rewards keeping people healthy."
Senate Bill 1 requires insurers to increase investment in primary care and, beginning in 2028, limits certain commercial health plan reimbursement rates to 250% of Medicare unless exempted under state or federal payment models.
Earlier versions of the bill drew strong opposition from the Delaware Healthcare Association, which warned in March the proposal could result in more than $400 million in annual hospital funding cuts and put thousands of healthcare jobs at risk.
After lawmakers approved a substitute version, however, the association endorsed the compromise.
"That allows us to brace for the headwinds we see coming down because of federal changes to Medicaid and really prepare for the reimbursement caps that will essentially be included in Senate Bill 1 as this is implemented," said Christina Bryan, senior vice president of the Delaware Healthcare Association.
Bryan said one of the key changes exempted some hospitals from the law's reference-based pricing provisions.
"That was really critical because there are so many dynamics that each of our hospitals face differently," Bryan said. "Some are more rural than others. We felt it was really necessary to ensure that those were exempted because they were also facing some significant financial challenges and will be because of a lot of the federal changes."
The additional bills signed Monday focus on financial protections for patients and hospitals. Senate Bill 13 creates what supporters describe as one of the nation's strongest hospital financial assistance standards while establishing uniform procedures for patients seeking charity care and limiting medical debt collection practices. Senate Bill 313 makes Delaware the only state with an active moratorium preventing nonprofit hospitals from being acquired by for-profit entities, including private equity firms.
