By Joseph Edelen

WILMINGTON — Delaware is one of six states without a health care facility assessment for its hospitals, which has handicapped the state’s ability to access federal Medicaid funds.

But, under a new proposal unveiled by Sen. Sarah McBride, D-Wilmington, on Monday, the First State could utilize federal funding to improve and expand Medicaid services.

“What we know for sure is that with this money, more people will get better health coverage here in Delaware. This is a monumental step forward for health access and equity in Delaware,” Sen. McBride said during a press conference at the Carvel State Office Building.

Medicaid is funded by the state and federal government and primarily serves low-income families and individuals with disabilities.

According to the Division of Medicaid and Medical Assistance, about 300,000 Delawareans were enrolled in the program as the state began eligibility redeterminations — known as unwinding — following last May’s end to the COVID-19 public health emergency.

Known as the “Protect Medicaid Act of 2024,” Senate Bill 13 aims to bolster the state’s Medicaid program following more than a year of collaboration between Sen. McBride and stakeholders in the health industry, such as the Delaware Healthcare Association, Christiana Care and Nemours.

Through Senate Bill 13, the establishment of hospital facility assessment would introduce a 3.58% provider tax on net-patient revenues of these acute-care and behavioral health facilities in Delaware.

Those monies would then be directed to a hospital quality and health equity fund, which will qualify the state for federal matching funds. Once federal funding is secured, hospitals would be made whole, thus preventing costs from the investment being passed onto patients.

Essentially, Sen. McBride said, the state will borrow money from Delaware hospitals to unlock and secure federal resources for Medicaid in the First State.

If the legislation becomes law before the end of this year’s legislative session, the senator expects the state to begin reaping the benefits of the policy in 2025.

There are safeguards in the legislation that make clear that monies must be used for the Medicaid program, though some funds would be eligible to address potential Medicaid shortfalls and existing Medicaid operations.

The utilization of those funds would be decided during the Joint Finance Committee’s budget-writing process, though Sen. McBride said there will also be “elements of executive decision making” on how to spend the money.

By establishing this revenue source, Sen. McBride hopes the measure can allow the legislature to enact policies related to Medicaid that have stalled due to budget constraints, such as her Senate Bill 204, which would improve the adult Medicaid benefit for dental care.

“It’s my hope that we’ll see bills that have been on the table – for, in some cases, years - will now have a clearer path forward because there will be this new revenue stream, unlocking the federal matching funds, and, by the safeguards in this legislation, will need to be used for improving Medicaid, not just maintaining the status quo,” Sen. McBride said.

During the unveiling of the legislation, Christiana Care CEO Janice Nevin and several other stakeholders applauded the policy for its ability to address disparities in health care and ensure all Delawareans have access to high-quality care.

“This proposal will enhance our ability to provide care in the communities we serve,” Ms. Nevin said. “Specifically in key critical services like primary care, behavioral health and in pediatric and maternal health. It will also ensure we can invest in our frontline caregivers and expand access to care, especially for Medicare and Medicaid populations.”

Sen. McBride said Monday she was planning to file the bill Tuesday. Once introduced, the legislation will be assigned to the Senate Health and Social Services Committee for consideration.