Gov Meyer Signs Landmark Health Care Affordability Package
A three-bill health care affordability package has been signed into law by Governor Matt Meyer. These measures, Senate Bill 1, Senate Bill 13 and Senate Bill 313, are aimed at lowering health care costs, expanding access to care and protecting Delaware hospitals from private equity ownership. These bills build on the Governor’s broader affordability agenda, including previous efforts to relieve medical debt and protect Delaware families from rising costs.
Additional information from Gov. Meyer:
Joined by legislative leaders, state officials, health care providers and community partners at Henrietta Johnson Medical Center in Wilmington, the Governor signed Senate Bill 1, Senate Bill 13, and Senate Bill 313, which together represent a comprehensive approach to improving health care affordability in Delaware.
“Too many Delawareans are doing everything right and still getting hit with medical bills they cannot afford,” said Governor Matt Meyer. “At a time when Republicans in Congress are cutting health care and families face rising costs, Delaware is stepping up. This bill package ensures that hospitals’ primary focus will always be patients over profits and moves us toward a health care system that lowers costs while providing high quality, accessible care.”
“Every Delawarean deserves a healthcare system that is affordable and prioritizes primary, preventative care,” said Senate Majority Leader Bryan Townsend, sponsor of Senate Bill 1. “Strengthening primary care is one of the smartest investments we can make to improve Delawareans’ health. Senate Bill 1 will help lower costs and create a healthcare system that values patients more than profits. I am excited to see the lasting, positive impacts SB1 will have on Delaware families and our entire healthcare system.”
“As private equity firms continue buying hospitals across the country, we are seeing a trend of healthcare being placed above the safety and well-being of the patients. Delaware cannot allow these practices to occur within our state, and so we are taking a different path that protects our hospitals and keeps the focus on the people and communities they serve,” said Sen. Spiros Mantzavinos, prime sponsor of Senate Bill 313. “Alongside the numerous healthcare bills that were signed today, we are reflecting a continued commitment to creating a more accessible and affordable healthcare system for Delawareans.”
“Healthcare is a human need, and not a privilege reserved only for those who can afford it,” said Sen. Marie Pinkney, prime sponsor of Senate Bill 13. “Too many families have had to choose between getting necessary care and protecting their financial standing, and that should not be the reality for everyday Delawareans. SB 13 is about treating people with dignity, removing barriers to care, and ensuring families are prioritizing their health instead of living in fear of medical debt. I’m proud to see the support that SB 13 received across our legislative body, and am grateful to have it signed into law today by Gov Meyer.”
“No one plans for a medical emergency, yet for many, a single hospital visit or a medical crisis can change everything overnight,” said Rep. Chukwuocha. “Delawareans shouldn’t have to choose between prioritizing their health and worrying about whether they can afford the care they need. Together, these measures move our state toward a more transparent, compassionate, and accessible healthcare system for all families.”
“Undue is thrilled that Delaware is leading the charge to protect families in the midst of an affordability crisis,” shares Undue Medical Debt CEO and president, Allison Sesso. “Delaware is the first state to create a statewide standard requiring hospitals to provide free care to those under 300% of the poverty line — around $80k/year or less for a family of three. And fortunately, for those over that income threshold, this expansion is paired with automatic financial aid screening, so patients can proactively access discounts and aren’t left navigating a paperwork maze while they get care for themselves and their loved ones.”
Senate Bill 1 strengthens primary care and bends the long-term cost curve on hospital prices. It makes permanent Delaware’s requirement that state-regulated insurers spend at least 11.5% of their medical costs on primary care and requires them to offer payment models that reward doctors for keeping patients healthy rather than for the volume of services they bill. It also phases in a cap limiting hospital charges to 250% of Medicare rates by 2033 for the state employee plan and fully insured commercial plans, exempting hospitals that adopt multi-payer, value-based care, along with certain rural and specialty hospitals.
Senate Bill 13 expands and standardizes hospital charity care across Delaware. Under the bill, patients earning less than 300% of the federal poverty level may qualify for free care regardless of insurance status, the highest statewide free care threshold in the country. Patients earning less than 400% of the federal poverty level may qualify for discounted care, and patients under 500% may qualify for assistance if hospital costs exceed 10% of household income. Paired with automatic financial assistance screening, the law establishes among the strongest patient protections in the nation.
Senate Bill 313 establishes a two-year moratorium, through July 1, 2028, on for-profit actors gaining control of Delaware health systems. The bill is designed to protect affordability, access and quality while the state works with community members and the General Assembly on a longer-term solution. Delaware is the second state to create such a moratorium and the only state in the country with an active moratorium on private equity hospital ownership.