DELAWARE — A proposed Delaware bill aimed at boosting primary care investment and lowering hospital costs is drawing both support and concern from healthcare providers and industry leaders.
Senate Bill 1 made it out of the committee Wednesday.
Supporters of Senate Bill 1 say it would improve access to primary care by requiring insurers to spend more on those services and by capping hospital payments at 250% of Medicare rates. State officials estimate the measure could save about $282 million over its first five years while continuing recent investments in primary care.
But the Delaware Healthcare Association and some healthcare workers warn the legislation could have unintended consequences, including job losses and reduced services.
Dr. Priya Dixit-Patel of ChristianaCare said she worries the bill could undermine recent progress in expanding access and improving care.
“I worry about a sort of sledgehammer effect,” Dixit-Patel said. “It may undermine the work we’ve done and hinder our ability to recruit and retain a strong clinician workforce.”
She said reforms are needed but should be developed collaboratively among hospitals, independent practices and other stakeholders.
The Delaware Healthcare Association estimates hospitals could face up to $413 million in cuts under the proposal, putting roughly 4,000 jobs at risk. The group’s president, Brian Frazee, said the policy could lead to layoffs and reduced services, particularly in high-need areas.
Supporters argue the current system needs broader reform. Delaware resident Samuel Gault said disparities in care often come down to cost.
“The less money you’ve got, it seems like the quality of care you get is not as great,” Gault said.
Senate Bill 1, introduced March 5 by Sen. Bryan Townsend, remains under consideration in committee.