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Delaware Workers’ Compensation Insurance Progress

Posted By John Baker, Friday, June 06, 2014

Over the past four years, workers’ compensation insurance premiums have grown by 40 percent. The majority of this premium increase results from medical costs. Nonprofits, that are businesses, small businesses and the overall economy are harmed by these increases. Because of these increases, Delaware’s workers’ compensation medical costs are among the highest in the country. The Workers’ Compensation Task Force, chaired by Lieutenant Governor Matt Denn and consisting of representatives of all interested parties, was charged with finding a solution to the soaring premiums.

The Task Force’s suggestion was to tie workers compensation medical procedure payment rates to Medicare. This would result in somewhat lower reimbursement rates made to health care providers for treating workers’ compensation patients. Over the next few years, these actions will target lowering workers’ compensation costs by 33 percent. The reimbursement rate will be set at 200 percent over Medicare—with the exception that surgeons and radiologists will be paid at a slightly higher rate as a result of higher costs and more complex treatments in their particular fields.

The proposal has near unanimous support across party lines, including key support by Governor Jack Markell. This past Wednesday this House Bill 373 was voted out of the House Economic Development/Banking/Insurance/Commerce Committee and is on its way to the House Agenda. The recommendation will likely be approved by the General Assembly before the end of session on June 30th. Know that we are watching this important matter for you.

As always, please feel free to reach out to me with any comments or questions at or 302.777.5500.


Tags:  Insurance  Lt. Governor  Task force  Workers Compensation 

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