Bills to keep Delaware from adopting Medicare Advantage plan pass in the Senate, head back to House

Two bills advocating for state retiree health insurance benefits pass in the Senate, but head back to the House with new amendments.

Delaware lawmakers have been working to repeal efforts made by the Carney Administration in 2022 to move state retirees from a Medicare supplement plan to a Medicare Advantage plan.

Retirees argued the new benefits were not what they were originally promised and sued the state for implementing the plan without holding public comment.

The first bill repeals the option of providing health care insurance to state pensioners under Medicare part C, known as a Medicare Advantage plan unless they are employed on or after Jan. 1, 2025.

The second provides extra regulatory and transparency processes to the State Employee Benefits Committee — the body in-charge of choosing state health insurance plans — and their meetings.

Both bills passed in the House in March, but Sen. Majority Leader Bryan Townsend (D-Newark) introduced a new amendment on each of the bills codifying the need for public comment before a new Medicare plan can be adopted.

“The Senate amendment here would basically say that a Medicare Advantage plan for future eligible retirees could not be passed until public comment is afforded at the meeting at which a vote to pursue that plan would occur,” Townsend said.

This additional protection comes after the Delaware Supreme Court overruled a Delaware Superior Court decision to halt the state’s transition to a Medicare Advantage plan after ruling the state violated the Administrative Procedures Act by not allowing input from state pensioners.

But Justice Abigail LeGrow said in her ruling, writing for a three-judge panel, the choice of a Medicare plan is not subject to the Administrative Procedures Act and therefore does not require public comment.

These two bills would change that, which Sen. Minority leader Brian Pettyjohn (R-Georgetown) feels is a necessary adjustment after hearing state retiree concerns while serving on the Retiree Healthcare Benefits Advisory Subcommittee.

“One thing was very clear in listening to the retirees – the people that were affected by the suggested change to Medicare Advantage – they didn’t feel like that process that led up to that was open and transparent enough and that they were heard,” Pettyjohn said.

Both bills passed with full bipartisan support in the Senate.

If the two bills pass in the House for a final time — which are currently slated to be heard on Thursday — they will head to Gov. John Carney who has not indicated if he will sign them into law.

If Carney opts not to sign the legislation, but does not veto them, the bills will become law after 10 days of no action.