Last week, Governor of Delaware Matt Meyer signed three bills to lower healthcare costs, expand access to care, and protect Delaware hospitals from private equity ownership. The Governor signed Senate Bill 1, Senate Bill 13, and Senate Bill 313, which together form a comprehensive approach to improving healthcare affordability in Delaware
A press release states that Senate Bill 1 enhances primary care and aims to reduce long-term hospital costs. It makes Delaware’s requirement permanent for state-regulated insurers to spend at least 11.5 percent of their medical costs on primary care. The bill also mandates payment models that incentivize doctors to keep patients healthy rather than focus on service volume. Additionally, it introduces a phased cap on hospital charges, limiting them to 250 percent of Medicare rates by 2033 for the state employee plan and fully insured commercial plans. Hospitals that participate in multi-payer, value-based care and certain rural or specialty hospitals are exempt from this cap.
Senate Bill 13 expands and standardizes hospital charity care across Delaware. Under the bill, patients earning less than 300 percent of the federal poverty level may qualify for free care, regardless of insurance status, setting the highest statewide free care threshold in the country. Patients earning less than 400 percent of the federal poverty level may qualify for discounted care, and those under 500 percent may qualify for assistance if hospital costs exceed 10 percent of household income. Paired with automatic financial assistance screening, the law establishes some of the strongest patient protections in the nation.
Senate Bill 313 establishes a two-year moratorium, through July 1, 2028, on for-profit entities 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 with an active moratorium on private equity hospital ownership
“Too many Delawareans are doing everything right and still getting hit with medical bills they cannot afford,” Governor Meyer said in a statement. “At a time when Republicans in Congress are cutting healthcare 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 healthcare 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, in a statement. “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.”
These bills build on the Meyer administration’s broader affordability agenda, including prior efforts to relieve medical debt and protect Delaware families from rising costs
