Delaware Medicaid bolstered by new legislation

DOVER — Gov. John Carney signed legislation Tuesday that will provide the largest continuous investment in Delaware’s Medicaid program since the federal Affordable Care Act was signed into law in 2010.

Spearheaded by Sen. Sarah McBride, D-Wilmington, the Protect Medicaid Act of 2024 will unlock a new source of state and federal funding for the program.

Senate Substitute 1 for Senate Bill 13 passed the General Assembly unanimously earlier this year and included partnership from hospital leadership and the Delaware Healthcare Association, which Sen. McBride said was an “example of how we can solve our greatest challenges through collaboration and compromise.”

“While this legislation passed unanimously, make no mistake — this legislation’s passage was far from assured a year ago when we started negotiations,” she added. “After more than two decades of false starts and unsuccessful attempts to secure this funding, we now join almost every other state in tapping this critical funding to help us expand coverage, improve health outcomes, support providers and save lives.”

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

Nearly 300,000 Delawareans were enrolled in the program as the state began eligibility redeterminations — known as “unwinding” — following the May 2023 end to the COVID-19 public health emergency, according to the Delaware Division of Medicaid & Medical Assistance.

Under the newly signed legislation, a hospital facility assessment will be established, implementing a 3.58% provider tax on net patient revenues.

These monies will be directed to a hospital quality and health equity program, and allow the state to receive federal matching funds, ensuring that hospitals are compensated, while preventing costs from being passed to patients.

Delaware will receive the new Medicaid funding beginning July 1, 2025.

“This effort will enable Delaware to continue investments in our shared health care priorities, including workforce, access, behavioral health and health equity,” said Brian Frazee, the president and CEO of the Delaware Healthcare Association.

“This is yet another example of what we can accomplish when policymakers, elected officials and hospitals work together to advance our shared goal of enabling Delawareans in all of our local communities to achieve optimal health.”

With the measure now law, Sen. McBride has stated that she is hopeful the General Assembly will enact Medicaid-related policies that have stalled in the past due to budget constraints.