DELAWARE - The Delaware State Senate passed several bills aimed at addressing healthcare costs on June 12 as the General Assembly executes a wider effort to address rising healthcare costs in the state.
Key takeaways:
- A Senate bill looks to enhance hospital charity care when it comes to individual medical debt
- Senate bill would protect nonprofit hospitals from being acquired by private equity
- A bill passed by Senate aims to direct the state Department of Health and Social Services to find solutions for rising healthcare costs
Medical debt
Senate Substitute 1 for Senate Bill 13 increases requirements for hospitals to guarantee financial assistance for patients at or below 300 percent of the poverty line that may be at risk of taking in significant medical debt. It would require most Delaware hospitals to provide financial assistance for those at risk of accruing large amounts of medical debt. State hospitals have already made this a priority as hospitals provided almost $100 million in uncompensated care in 2024, according to the Delaware Healthcare Association.
It was passed and sent to the House. Rep. Nnamdi Chukwuocha, a co-sponsor of the bill, said the bill would improve transparency for patients and ensure that patients are aware of support before their medical debt becomes too big.
"This legislation aims to move us toward a more transparent, compassionate, and accessible system for Delaware families," Chukwuocha said.
President of the Delaware Healthcare Association Brian Frazee commended the legislature on increasing charity care.
"The status quo is not working, and it’s going to take all stakeholders, working together, to make the First State First in Health,” Frazee said. “Our hospitals continue to lead the way on addressing Delaware’s healthcare challenges even as they brace for major headwinds."
Frazee said some of the challenges that hospitals are facing include a growing and aging population that needs access to more healthcare and expected number of higher uninsured populations.
Nonprofit hospitals
The Senate also passed Senate Bill 313, which prohibits nonprofit hospitals from being acquired by private equity firms. It has been sent to the House.
"Healthcare costs are skyrocketing for a number of reasons: workforce shortages, inflation, and other market pressures. But on top of that, we’re seeing a surge of private equity firms buying hospitals around the country with one simple and alarming goal: maximizing profit off of patients seeking care,” said co-sponsor of the bill, Sen. Spiros Mantzavinos.
Additional solutions to healthcare costs
The state Senate also passed Senate Joint Resolution 19 on June 11. The bill, which is now in the House, would direct the Delaware Department of Health and Social Services to find additional solutions for addressing the state's high healthcare costs. DHSS would be required to submit a report to the legislature by Jan. 1, 2027.
According to DHSS, Delaware's healthcare spending in 2024 increased to $11.3 billion, an increase of about 8.7 percent from the previous year.
"If we are serious about improving affordability, we need to take a comprehensive look at the entire health care system and understand how each of these sectors contributes to overall costs," Sen. Ray Seigfried said.
