Governor Meyer Announces Landmark Healthcare Legislation that Lowers Costs and Increases Access for Delawareans

DOVER - Governor Matt Meyer today announced the introduction of two major pieces of legislation to lower healthcare costs and strengthen patient protections for Delawareans, part of a broader effort to make the state's healthcare system more affordable, transparent, and accountable.

Joined by legislative leaders and state officials, Governor Meyer outlined his administration's approach to addressing rising healthcare costs, including expanding access to affordable care and placing restrictions on the acquisition and control of Delaware hospitals by for-profit entities. The Governor also emphasized his continued focus on advancing multi-payer value-based care to improve outcomes and bend the healthcare cost curve.

"Healthcare costs are too damn high, and Delawareans are being forced to make impossible choices. No one should have to decide between paying for their medications or their rent," said Governor Meyer. "These bills are about putting Delawareans first - healthcare should be about helping people, not profiting off of their pain."

Expanding Access to Affordable Care
Governor Meyer highlighted legislation sponsored by Senator Marie Pinkney and Representative Nnamdi Chukwuocha that would establish one of the nation's most comprehensive statewide standards for hospital charity care.

The legislation requires all general acute care hospitals in Delaware to provide free care to individuals earning up to 300% of the Federal Poverty Level and discounted care for those earning up to 400%, regardless of insurance status. Patients earning between 300-350% of the Federal Poverty Level would receive at least a 75% discount, while those between 350-400% would receive at least a 50% discount. The bill also requires hospitals to maintain a medical hardship policy providing at least a 50% discount for patients with medical expenses greater than 10% of their household income if they are below 500% of the Federal Poverty Line. The bill also closes a long-standing gap by requiring physicians who provide care at hospitals - including emergency physicians, anesthesiologists, radiologists, and hospitalists - to honor financial assistance determinations on their own bills. Finally, it creates a standardized, statewide charity care application process, building on existing requirements under Delaware's Certificate of Public Review.

"Healthcare is not truly accessible if people are afraid that getting care will financially ruin them. When families delay care because of cost, health outcomes worsen, preventable conditions become emergencies, and costs increase for everyone across the healthcare system," said Senator Marie Pinkney, sponsor of Senate Bill 13. "This is not just a consumer protection bill. It is a public health bill, it is a healthcare affordability bill, and it is a dignity bill."

Protecting Delaware Hospitals and Patients
Governor Meyer also announced legislation led by Senator Spiros Mantzavinos and Representative Kendra Johnson to protect Delaware's nonprofit acute care hospitals from for-profit takeover.
Through July 1, 2028, the bill prohibits any for-profit entity from acquiring control of a nonprofit acute care hospital in Delaware - including through full sales, mergers, and affiliations, as well as through incremental routes such as minority ownership stakes, the right to appoint board members or executives, or contractual veto power over major hospital decisions. Transactions in violation of the prohibition are void and of no legal effect. The bill also bars for-profit entities from submitting Certificate of Public Review applications to develop, construct, or acquire acute care hospitals in Delaware during that period.

Prior to the expiration of the moratorium, Governor Meyer plans to introduce a comprehensive health care competition framework - aimed at lowering costs, increasing transparency, and addressing the consolidation that has driven up prices nationally.

"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 Sen. Spiros Mantzavinos, prime sponsor of SB 313. "We're not going to let this happen in Delaware. I'm proud to work with Rep. Kendra Johnson to place a moratorium on these types of transactions until further notice."

"Around this time last year, Delaware County, PA issued a disaster declaration to help communities find alternative emergency medical services after Crozer Health filed for bankruptcy, and promptly closed Crozer-Chester Medical Center and Taylor Hospital. I was one of the thousands of patients affected by this closure, and I refuse to let my community in Delaware suffer like my community in my hometown Chester still is," said Rep. Kendra Johnson, House Prime Sponsor of SB 313. "I am proud to work alongside my colleague Sen. Mantzavinos in ensuring that SB 313 is passed and signed into law - ensuring that the necessary safeguards are put in place to avoid a catastrophic hospital shutdown like we saw happen in Delaware County."

Multi-Payer Value-Based Care
Governor Meyer, Secretary Linke Young, and Commissioner Navarro discussed the importance of multi-payer value-based care in bending the healthcare cost curve. Both healthy competition and payment incentives that align patient and provider interests while maintaining quality are critical to bringing down costs over the long term. The Meyer Administration is committed to working with the General Assembly, the Department of Insurance, and Delaware's provider community to promote multi-payer value-based care, including by leveraging Rural Health Transformation Program funding.

"Multi-payer value-based care is a powerful, forward-looking tool to lower costs for Delawareans," said Dr. Neil Hockstein. "I am thrilled that the Meyer administration is championing this long-term solution that will bend the cost curve and provide accessible and affordable healthcare for all of the people of Delaware."