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POLITICS


BIPARTISAN BILLS BUILD ON DELAWARE HOUSE EFFORTS TO PROTECT STATE RETIREE
BENEFITS

Amanda Fries
Delaware News Journal


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 * The Delaware House in March approved a bill, which has yet to be voted on by
   the state Senate, that prohibits the state from considering Medicare
   Advantage plans.
 * Another bill passed by the House made changes to the State Employee Benefit
   Committee, which is responsible for managing state employee and retiree
   benefit coverage.
 * A new package of bipartisan bills aims to build on those earlier efforts to
   protect retiree's health care coverage and encourage fiscal responsibility.

Editor's Note: This story has been updated to reflect a Delaware Supreme Court
ruling issued in April that overturned a lower court ruling issuing a stay on
the state's switch to Medicare Advantage.

A package of three bipartisan bills introduced in the Delaware House of
Representatives will build on earlier efforts to protect state retiree’s health
care benefits and encourage fiscal sustainability.

The House bills, which are sponsored by Rep. Paul Baumbach, House Minority
Leader Mike Ramone, Senate Majority Leader Bryan Townsend and Senate Minority
Whip Brian Pettyjohn, would incorporate more of the recommendations made by the
Retiree Healthcare Benefits Advisory Subcommittee.

The bills would make adjustments to the health insurance premium the state
covers for eligible pensioners; create a pensioner coordination of benefits
policy; and direct the state to provide eligible pensioners with similar
coverage to the current Special Medicfill Medicare Supplement plan.



“With the introduction of these three measures, we’ve now successfully
translated all seven (subcommittee) recommendations into meaningful
legislation,” Baumbach said in a news release. “We arrived at these
recommendations through a collaborative, all-hands-on-deck approach, recognizing
that while compromises were necessary, we’re implementing them in a responsible,
phased-in manner.”

The latest bills come following Delaware House approval of two other legislative
reforms to state retiree benefits that were sparked by a legal debacle that
ensued when the state switched retirees’ health care coverage to Medicare
Advantage without their input. 



LATEST ON LAWSUIT:Why is Delaware appealing ruling that blocked Medicare
Advantage plan for state retirees?

Delaware’s switch prompted a group of state retirees to file a lawsuit against
Delaware in Superior Court in 2022. The courts issued a stay on implementing
Medicare Advantage and retirees continue to receive their benefits through the
Medicfill Supplement, but Delaware continued to fight the matter in court.



In April, the Delaware Supreme Court overturned the lower court ruling,
determining that a Superior Court judge had no jurisdiction to enter the stay
and had "erred" in determining that the state's Administrative Procedures Act
had been violated, according to the April 12, 2024 ruling.


RETIREE BENEFIT BILLS PASSED BY HOUSE

The Delaware House in March passed two bills, House Bill 281 and 282 – sponsored
by Baumbach – that prohibit the state from considering Medicare Advantage plans
for state retirees and also made several changes to the State Employee Benefit
Committee.



The committee is responsible for managing state employee and retiree benefit
coverage.

Both bills unanimously passed the House on March 12, however, neither have come
to a vote by the full Senate yet.



“These bills are a meaningful first step toward restoring trust with our state
retirees, who have served our state government for many years under the
assumption that these benefits would be available for them when they retired,”
Baumbach said in a news release after the bills passed. “It’s time that we put
the healthcare needs of our state retirees at the forefront and address the very
real concerns our retirees have raised over the past two years.”




WHAT ARE THE LATEST PROPOSALS?

House Bill 375 would adjust the portion of the health insurance premium the
state covers for eligible pensioners hired on or after Jan. 1, 2025, according
to the release. 

Under this bill, the news release stated the state would cover: 

 * 50% of the premium for eligible pensioners with at least 15 years of service
   upon retirement.
 * 75% of the premium for eligible pensioners with 20 to 25 years of service
   upon retirement.
 * 100% of the premium for eligible pensioners with 25 years or more years of
   service upon retirement.

STATE EMPLOYEE BENEFITS:Why Delaware is eying a 27% premium hike on state
employees' health insurance

House Bill 376 would create a pensioner coordination of benefits policy similar
to the spousal coordination of benefits policy currently in place. Under the
bill, a state employee retiring after 20 years of service would no longer be
qualified for full, primary coverage under the state’s plan if they secure
another job in the private sector with health insurance benefits. 



The measure would impact eligible retirees hired after Jan. 1, 2015 who are
eligible for health insurance benefits through a new employer. Spouses of state
employees or retirees also cannot receive full coverage from the state if they
have access to health insurance through their own employer. 



“Controlling the rising cost of health insurance should be one of our main
priorities as legislators,” Pettyjohn said. “It should also be our duty to
fulfill the promises made to the state pensioners when they started working for
the state. This package of legislation will do just that.” 

House Bill 377 would direct the state to provide eligible pensioners hired
before Jan. 1, 2025 with a plan similar to the current Special Medicfill
Medicare Supplement Plan. For those hired after that date, when they reach age
65, the state could offer a different Medicare supplement plan as long as it’s
“not a high deductible plan.”

All three bills have been assigned to the House Administration Committee.

Got a tip? Contact Amanda Fries at afries@delawareonline.com. Follow on her on X
at @mandy_fries.



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