Legislation to improve Delaware health care amended

Sunset provision added to Senate Bill 120

Delaware State News
Posted 5/18/21

DOVER — Legislation sponsored by Senate Majority Leader Bryan Townsend and Rep. David Bentz to refocus Delaware’s health care system on preventive primary care and beneficial patient outcomes was updated Monday based on input from the state’s hospital systems, medical providers and the Department of Insurance.

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Legislation to improve Delaware health care amended

Sunset provision added to Senate Bill 120

Posted

DOVER — Legislation sponsored by Senate Majority Leader Bryan Townsend and Rep. David Bentz to refocus Delaware’s health care system on preventive primary care and beneficial patient outcomes was updated Monday based on input from the state’s hospital systems, medical providers and the Department of Insurance.

According to a Democratic news release, Senate Substitute 1 for Senate Bill 120 most notably adds a sunset provision that would require the General Assembly to renew aspects of the legislation by Jan. 1, 2027. The measure would allow for reevaluation of whether the rate caps and alternative-payment models proposed by the bill are working to control health care costs and expand primary care options in Delaware.

“I am confident the legislation Rep. Bentz (D-Christiana) and I put forward after three years of careful study and consideration will result in more primary care providers serving our communities and better health outcomes for our neighbors while also putting the brakes on the exorbitant increases in healthcare costs that we’ve all felt over the last decade or more,” said Sen. Townsend, D-Newark.

“But I also recognize that transitioning to a new payment model may bring a level of uncertainty for some healthcare providers, who requested a reasonable opportunity to revisit these reforms after five years. The sunset provision and other changes included in the substitute bill reflect our willingness to work with Delaware health care providers who share our interest providing the best possible healthcare system for the residents of this state.”

SS 1 for SB 120 received an endorsement from ChristianaCare, the largest health system and the largest private employer in the First State.

ChristianaCare, which operates three hospitals and an extensive network of primary care and patient services, recently entered into a joint venture with Highmark Health, one of the region’s largest health insurance providers, to create a new model of value-based care that aims to incentivize outcomes and efficiency.

With funding already included in Gov. John Carney’s recommended budget, Rep. Bentz, who chairs the House Health & Human Development Committee, said there is an urgent need to pass SB 120 this year.

“The primary care industry in Delaware is facing substantial challenges,” he said. “Physicians are retiring or leaving the state, creating a shortage that means poor access to care for residents. Factor in the low levels of investment and we have an unsustainable system.

“We need to tackle this crisis head-on immediately. Primary care is critical to improving health outcomes and reducing costs long term. Everyone in health care recognizes the importance of primary care and ensuring access to it. This legislation will accomplish that goal and work to reverse the losses we’ve seen in recent years.”

According to the news release, SS 1 for SB 120 would implement a series of reforms designed to improve the metrics used to reimburse providers, place hard caps on total cost increases of certain inpatient and outpatient medical services, bolster investments in expanding the availability of primary care services and provide the Department of Insurance tools to address ballooning costs.

The proposed reforms were informed by the work of the Department of Insurance and its Office of Value Based Health Care Delivery, which was created by the General Assembly in 2019. Those agencies also would be tasked with implementing the legislation, creating necessary regulations and enforcing its measures.

Reported out of the Senate Executive Committee last month, SS 1 for SB 120 is now pending before the Senate Finance Committee.

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