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 email@example.com or