Insurers required to cover testing and telemedicine services related to COVID-19

While no active cases of the virus have been confirmed in Delaware to date, Insurance Commissioner Trinidad Navarro notified insurers today of their duties related to COVID-19. In a bulletin to insurance companies, the Commissioner reminded Delaware’s health insurers that testing for COVID-19 is a covered essential health benefit and that access to telehealth and telemedicine services should be made available.

“Concerns around the cost of care for coronavirus may be a significant factor in residents deciding not to seek out medical interventions when symptoms arise, leading to negative health impacts on the individual, and an increased possibility of the spread of the virus,” said Commissioner Navarro. “Ensuring testing and expanding telemed options may be the biggest thing we can do to prevent the escalation of new transmissions.”

The bulletin notes that some insurers have taken additional steps to meet the challenges posed by the virus, including waiving cost sharing. “I applaud those carriers who have committed to waiving upfront costs for their consumers. Residents may avoid being tested simply because they can’t afford to pay their co-pays or deductibles, and I commend the companies that are taking the barrier of economic ability out of the equation,” said Commissioner Navarro.

In addition to ensuring COVID-19 testing is covered, whether at a testing facility or in emergency care, the bulletin also explains options surrounding telehealth and telemedicine and clarifies that healthcare providers can utilize webcam and facetime with their clients.

Should active Delaware cases occur, medical facilities may experience a high level of activity. The bulletin specifies that care related to COVID-19 outside of the testing process should be considered in-network by health insurers if their in-network providers are unable to provide care in a timely fashion, in a safe and convenient location, or if they do not have trained, experienced providers of related care in-network. The department made clear that immunizations for COVID-19, if made available, should be covered by insurers, as would related prescription drugs. The bulletin also reminds insurers that Delaware law prohibits surprise billing.

Delaware’s Division of Public Health (DPH) Smyrna Health Lab can test for COVID-19. Testing conducted by the Division of Public Health carries no costs to consumers. DPH has opened a COVID-19 hotline for residents at 1-866-408-1899, and will also respond to questions sent to DPHCall@delaware.gov. Visit de.gov/coronavirus for more information.

Commissioner’s bulletin to insurers

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Newly Medicare-eligible residents encouraged to attend Welcome to Medicare: 2020

The Delaware Medicare Assistance Bureau (DMAB), a division of the Department of Insurance, has announced a series of Welcome to Medicare: 2020 events taking place throughout the year. More than a dozen public learning sessions will take place across the state. Participants will learn about various parts of Medicare and their benefits, supplemental insurance policies, Medicare Advantage plans, Medicare prescription drug coverage, and details on signing up.

“Bringing information about Medicare to residents in convenient locations throughout the state helps us to increase understanding of the complex healthcare system and encourage the community to reach out to our team for assistance when needed,” said Insurance Commissioner Trinidad Navarro.

Upcoming events include:

• Wednesday, March 4 at 10:00AM, Delaware Department of Insurance, 1351 W. North Street, Dover*
• Wednesday, March 11 at 10:30AM, Bear Library, 101 Governors Place, Bear*
• Wednesday, March 18 at 10:00AM, Rockland Place, 1519 Rockland Road, Wilmington*
• Thursday, March 26 at 10:00AM, CHEER Community Center, 20520 Sandhill Road, Georgetown

*Commissioner Navarro will attend.
Residents who plan to attend are encouraged to RSVP by calling DMAB at (302) 674-7364 or via Eventbrite. Press should RSVP to Christina.Haas@delaware.gov.

Additional events are slated to take place throughout the year and can be found on the DMAB calendar. Details of future events may be subject to change.

“These seminars are geared towards new and soon-to-be Medicare beneficiaries who can meet with our professional staff and ask questions,” said Lakia Turner, DMAB Director. DMAB encourages residents turning 65 this year and those newly eligible for Medicare due to a disability to attend one of the Welcome to Medicare: 2020 sessions. You do not have to be retired or without health insurance to apply for Medicare.

While the annual open enrollment for Medicare takes place October 15 to December 7, residents are eligible to enroll up to three months before the month a person turns 65 and up to three months after their birth month. Applying early helps residents to avoid possible financial penalties, avoid gaps in coverage, and reduce wait time for response from Medicare and DMAB, which experience very high volumes of contact during annual open enrollment.

The Delaware Medicare Assistance Bureau provides free one-on-one health insurance counseling for people eligible for Medicare. Residents can call DMAB at 1(800) 336-7364 or (302) 674-7364 to set up a free confidential counseling session with a trained volunteer at a convenient site throughout the state.

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Action, legislation, and investigations into “patriot penalties”

Delaware Insurance Commissioner Trinidad Navarro responded strongly to a Consumer Federation of America report that Delaware service members may return home from deployment to increased auto insurance premiums, calling the practice completely unacceptable and issuing a formal bulletin to insurance companies about the illegality of this practice in Delaware. Commissioner Navarro plans to work with the General Assembly to expand protections from the “patriot penalty.”

“Service members and their families deserve to be treated like the heroes they are, returning home to gratitude and respect, not financial penalties,” said Commissioner Trinidad Navarro. “If a member of the military terminates their auto insurance because they are serving away from home and no longer using a personal vehicle – whether in another state, another country, or in international waters – they are making a personal financial decision that should not increase their auto insurance rates in the future.”

Last week, the Consumer Federation of America distributed a letter to Insurance Commissioners, detailing an investigative report that shows that service members who incur a lapse in coverage due to deployment are later charged higher premiums, even when the company is aware that the lapse is due to deployment. While the department is not aware of specific residents experiencing this issue, report indicated that Delawareans returning from deployment may be facing these increased costs, prompting a passionate response from Commissioner Navarro.

“It is absolutely outrageous and unacceptable to allow any insurer to charge a higher premium to a member of the military solely because they didn’t maintain insurance coverage when they were sent abroad to serve,” said consumer advocate Doug Heller, an insurance expert for Consumer Federation of America. “We thank Commissioner Navarro for being so quick to stand up for servicemembers and do whatever it takes to ensure that no company charges a Patriot Penalty in Delaware. We hope other Commissioners will follow his lead.”

Delaware banned this practice in 2008 after a resident who served in Iraq for more than a year experienced a premium increase upon return, extending the protection to spouses that accompany a service member in overseas service as well. Currently, the law is only applicable to deployments outside of the continental United States, but Commissioner Navarro wants to change that.

“Members of our armed services should be protected from the ‘patriot penalty’ regardless of the specific location of their deployment,” stated Commissioner Navarro, who also intends to remind insurers of their existing legal obligations and responsibilities to residents who serve overseas and their accompanying spouses via a formal bulletin to the insurance industry, stating that the practice is “illegal in Delaware and is punishable to the full extent allowed under the Delaware Insurance Code.”

The department encourages residents to share this information with military members and their families to increase awareness and caution when reviewing auto insurance rates and quotes. Anyone who thinks that they may have experienced a “patriot penalty” is urged to contact the department right away. Should individuals come forward with this concern, the auto insurance company where this occurred will be investigated thoroughly and appropriate action will be taken if the company is acting contrary to Delaware law.

Contact the Delaware Department of Insurance by visiting insurance.delaware.gov, emailing consumer@delaware.gov, or calling (302) 674-7300.

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Captives reduce taxpayer burden

Insurance Commissioner Trinidad Navarro announced data showing a strong year of captive insurance formations in Delaware, with 56 licenses provided in 2019, outpacing previous years. “The success of Delaware’s captive insurance program is reflective of the hard work of Delaware’s captive staff in applying firm but fair regulations and finding innovative ways to improve client experience,” said Commissioner Navarro.

Of the 56 licensees last year, 52 licenses were issued conditionally. Conditional licenses are an innovative form of licensing offered by the state since 2018. This cutting-edge form of licensing allows certain captive owners to obtain a license on the same day as applying.

“When I assumed office, I recognized the necessity to streamline a number of our processes. Creating the conditional license has helped make Delaware one of the most attractive domiciles for captive insurance,” explained Commissioner Navarro, “By bringing in these companies, we have been able to generate a substantial surplus revenue that reduces taxpayer burden and strengthens our economy.”

In 2019, Delaware’s robust captive insurance program contributed $3 million to the state’s General Fund and $1 million to the City of Wilmington. The dollars contributed to the General Fund reduce the tax burden for every woman, man, and child in the state by $3.10. Wilmington residents’ tax burden is reduced by $17.22 total per person – a family of four in Wilmington saves $68.88 per year because of this program. Since Fiscal Year 2014, the program generated $20.7 million in surplus revenue. A 2016 study conducted by University of Delaware found that the captive insurance program contributes $359 million annually to Delaware’s economy.

The success of the Captive division continues to earn international recognition. In 2019, Delaware was named a finalist for Non-Asian Domicile of the Year by leading industry magazine Captive Review. Steve Kinion, Captive Insurance Director, was again named to Captive Review’s global Power 50 rankings as one of the top 10 most influential international captive leaders.

Captive insurance companies, which are owned by the entities that they insure, are usually formed by businesses that wish to better manage the cost and administration of their insurance coverage. Delaware is the world’s fifth largest and the third largest U.S. captive domicile. It is one of four domiciles in the world recognized by the International Center for Captive Insurance Education as ICCIE Trained. To learn more, visit captive.delaware.gov.

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Workplace Safety Program saves $7.6 million for participants

The Delaware Department of Insurance has analyzed new filings from the state’s top writers of workers’ compensation insurance after announcing the third consecutive year of decreased rates in November. The top writers represent nearly 10,000 companies that hold policies within the state. Policyholders of these companies will see a total premium impact of more than $3.7 million, and when the entire writer universe is included, the Department expects realized savings of more than $4 million.

“Delaware businesses large and small are seeing decreased premiums from the third consecutive year of workers’ compensation rate decreases, and that benefits everyone,” said Commissioner Trinidad Navarro. “We will continue to work to make sure that Delaware has an inviting atmosphere for businesses and safe environments for employees.”

Technology Insurance Company, Inc.’s filing shows that their reduction will save policyholders a total of $845,594. Wesco Insurance Company’s total premium change of $651,721 takes the second-place spot for savings, while eight other top insurers are reporting six-digit premium impacts. Of the state’s top writers, American Zurich Insurance Company filed with the largest overall percentage rate impact, a decrease of 17.50%, with five other companies posting double-digit drops.

While realized savings will vary business to business, more discounts can be accessed through the Workplace Safety Program offered by the department. In 2019, 1,119 companies participated in the program, saving a combined $7.6 million through safety credits on their $72.9 million employer premium total – a savings of more than 10%. Businesses can earn discounts of up to 19% by providing and maintaining a safe place to work. More information on this program is available at insurance.delaware.gov/services/workplacesafety.

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