Lt. Gov. Hall-Long Outlines Recommendations to Protect State Retiree Healthcare, Foster Fiscal Sustainability

Hall-Long, chair of the Retiree Healthcare Benefits Advisory Subcommittee, detailed the subcommittee’s report before the Joint Health Committees in the House and Senate.    

DOVER, Del. — Lt. Governor Bethany Hall-Long on Monday outlined an actionable roadmap to protect state retirees’ healthcare and promote fiscal sustainability during a joint House and Senate Health Committee hearing. 

Meeting before the House Health and Human Development Committee and Senate Health and Social Services Committee, Lt. Governor Hall-Long, chair of the Retiree Healthcare Benefits Advisory Subcommittee, shared findings and recommendations from the subcommittee’s inaugural report analyzing retiree healthcare benefits and long-term funding sustainability.  

The General Assembly established the subcommittee in 2023 in response to concerns about retiree healthcare benefits for current and retired state workers and how to address a growing unfunded liability for those benefits. Sen. Bryan Townsend and Rep. Paul Baumbach serve as vice-chairs. 

“The retiree subcommittee brought a wide variety of stakeholders to the table including members of the General Assembly, retirees, union leaders and cabinet members. We established an unprecedented public process, creating a website to better inform residents, and taking public testimony at every step to make sure everyone was heard,” said Lt. Governor Hall-Long. “I want our retirees to know that their voices matter. Because of you, we were able to put together a robust suite of recommendations that are designed to strike a balance, protecting healthcare benefits for current retirees – including removing Medicare Advantage from consideration – and addressing long-term sustainability so we can provide the best healthcare system for current and future workers.  

“We have a window of opportunity to act, and it requires everyone to take bold steps now to meet this moment and protect and preserve the best healthcare not only for our retirees, but for future generations. I stand ready to work with everyone to turn this report and these recommendations into action.” 

“I want to commend the RHBAS, led by Lieutenant Governor Hall-Long, for their hard work in compiling such a thoughtful and detailed report on an issue that is top of mind for many of our constituents,” said Rep. Kerri Evelyn Harris, chair of the House Health and Human Development Committee. “Our state retirees have earned and deserve quality healthcare benefits and the recommendations put forward by the subcommittee will help guide us in making decisions that prioritize the well-being of our retirees and our state as a whole.” 

“I want to thank the members of the Retiree Healthcare Benefits Advisory Subcommittee for all of their hard work in developing a strong set of recommendations for how the State of Delaware can maintain a robust and affordable retiree healthcare plan for years to come,” said Sen. Sarah McBride, chair of the Senate Health & Social Services Committee. “My hope is that the State Employee Benefits Committee and the General Assembly will now use this roadmap laid out by the RHBAS to help ensure that current and future retirees receive the world-class healthcare services they deserve.” 

The subcommittee fostered an unprecedented public process, meeting 20 times over the course of nine months and collecting 10 hours of public testimony. Members reviewed other states’ Medicare supplemental coverage, individual marketplace and Medicare plans, funding options, and actuarial and financial data.  

The group’s report, published in December 2023, addressed several aspects of retiree healthcare, including strategies to address the Other Post-Employment Benefits (OPEB) Fund liability and recommended changes to the process by which the state selects state retiree healthcare plans. The estimated liability for retiree health care benefits is currently $8.9 billion, of which $8.4 billion is unfunded. The net unfunded liability is expected to grow to $20.7 billion by 2042.  

Subcommittee recommendations include:   

  • The state should neither request nor consider a Medicare Advantage plan going forward. 
  • Continue contributing 1% of general fund from the prior year to the OPEB fund.  
  • Increase OPEB pre-funding from 0.36% of payroll to 0.5%, then increase by an additional 0.25% of payroll each fiscal year until it reaches 10%.  
  • Ensure that current Medicare-eligible and pre-Medicare state retirees and state employees who retire prior to January 1, 2025 will be entitled to Special Medicfill/Rx benefits with no changes to the state share percentage of payments when they are Medicare eligible.  
  • Limit changes to plan design, eligibility requirements, or contribution share/percentage to workers hired on or after January 1, 2025.  
  • Solicit public comment before the SEBC holds a public vote to adopt the final request for proposal (RFP) for retiree healthcare plans.  
  • Research and measure the cost of state-sponsored healthcare benefits for three subgroups: current workers, eligible pensioners who are ineligible for Medicare, and eligible pensioners who are eligible for Medicare.  
  • Address the issue of healthcare pricing in Delaware, including statutory, regulatory, and administrative changes in 2024 to bring more transparency, consistency, affordability, and sustainability to healthcare prices and price growth.  

The subcommittee also recommended modifying the state’s calculation for the portion of the state share for healthcare that the state pays for retirees. The percentage is based on the number of years of service for each retiree. The full list of recommendations and additional details can be found in the full subcommittee report and in this press release. 
 
The RHBAS will continue to meet this year to further discuss the issue of retiree healthcare benefits and explore solutions.


Panel Submits Recommendations to Protect State Retiree, Worker Healthcare, Reduce Unfunded Liability

DOVER – A working group charged with addressing state retiree healthcare benefits issued a series of recommendations Friday to help ensure that current and future retirees have access to quality healthcare coverage and the trust fund for the benefits is solvent for future generations. 

The General Assembly established the Retiree Healthcare Benefits Advisory Subcommittee (RHBAS) via Senate Bill 29 in January 2023 in response to concerns about retiree healthcare benefits for current and retired state workers and how to address a growing unfunded liability for those benefits. A 2022 attempt to transition from a publicly managed Special Medicfill Supplement Plan to a Delaware-specific Medicare Advantage plan generated strong opposition from state retirees and an ensuing court challenge to the plan by RISE Delaware. 

Chaired by Lt. Governor Bethany Hall-Long, PhD, RN, the subcommittee, comprised of elected and state officials, retirees and state union representatives, met more than 20 times during a nine-month period to collect public testimony and review information about other states’ Medicare supplemental coverage, individual marketplace and Medicare plans, funding options, and actuarial and financial data.  

As a result of those meetings, the subcommittee made more than a dozen recommendations to the governor, the State Employee Benefits Committee and the General Assembly to ensure that current and future retirees have quality healthcare without restricting coverage or eligibility, and to reduce the unfunded liability. Included was a recommendation that Delaware neither request nor consider a Medicare Advantage plan going forward. 

“Delawareans and our millions of annual visitors rely on our dedicated, hard-working professionals who keep our state running every day. They educate our children, keep our streets safe, ensure our parks and beaches are pristine destinations, provide critical healthcare, and connect people with vital services,” said Lt. Governor Hall-Long. “It’s extremely important we maintain a strong, viable healthcare system for our retirees and current workers, while ensuring that Delaware remains an attractive employer by continuing to invest in future workers. 

“During this very public process, our retirees and workers spoke about how they valued the current healthcare benefits on which they rely, and we took that seriously. We also took our fiduciary responsibility to reduce the unfunded OPEB liability seriously. The result is a series of recommendations designed to strike a balance, protecting healthcare benefits for current retirees and addressing long-term sustainability for the healthcare system for current and future workers. 

“I’m extremely grateful to the dedication, hard work and collaborative spirit of our subcommittee members – in particular our vice chairs, Sen. Bryan Townsend and Rep. Paul Baumbach, and union representatives – and for the advocacy of so many state retirees. We owe a special thank you to the Department of Human Resources and State Pension Office, whose technical support was essential to this process. I’m pleased to share this report with the governor and General Assembly and hope these recommendations are enacted.” 

The estimated liability for retiree health care benefits is currently $8.9 billion, of which $8.4 billion is unfunded. The net unfunded liability is expected to grow to $20.7 billion by 2042. Last year, the General Assembly passed Senate Bill 175, which requires that every year, at least 1% of the total of all general fund operating budget appropriations for the prior fiscal year is appropriated to the Other Post Employment (OPEB) Fund. 

As part of their recommendations, the subcommittee leaned more heavily on funding as the most impactful way to achieve greater long-term stability for retiree healthcare and tackle the OPEB liability. Adjusting eligibility and plan design provided only modest liability reduction. 

“The Retiree Healthcare Benefits Advisory Subcommittee’s success in developing recommendations for an affordable, long term healthcare plan for the State of Delaware’s retirees is the direct result of the passion and commitment of our retiree community and the dedicated labor unions who fight for them and our current state workers each and every day,” said RHBAS Co-Vice Chair Senate Majority Leader Bryan Townsend, the prime sponsor of Senate Bill 29, which established the subcommittee. 

“A lot of the credit also goes to Lt. Governor Bethany Hall-Long who led this subcommittee through 20 sometimes contentious public meetings with grace and compassion. Her leadership was instrumental in bringing this subcommittee to a consensus around what I believe is a fair and transparent proposal that I am hopeful will be adopted by the full State Employee Benefits Committee and the General Assembly in the coming months.” 

In addition to its directive that Medicare Advantage not be considered, subcommittee recommendations include: 

  • Continue contributing 1% of general fund from the prior year to the OPEB fund. 
  • Increase OPEB pre-funding from 0.36% of payroll to 0.5%, then increase by an additional 0.25% of payroll each fiscal year until it reaches 10%. 
  • Ensure that current Medicare-eligible and pre-Medicare state retirees and state employees who retire prior to January 1, 2025 will be entitled to Special Medicfill/Rx benefits with no changes to the state share percentage of payments when they are Medicare eligible. 
  • Limit changes to plan design, eligibility requirements, or contribution share/percentage to workers hired on or after January 1, 2025. 
  • Solicit public comment before the SEBC holds a public vote to adopt the final request for proposal (RFP) for retiree healthcare plans. 
  • Research and measure the cost of state-sponsored healthcare benefits for three subgroups: current workers, eligible pensioners who are ineligible for Medicare, and eligible pensioners who are eligible for Medicare. 
  • Address the issue of healthcare pricing in Delaware, including statutory, regulatory, and administrative changes in 2024 to bring more transparency, consistency, affordability, and sustainability to healthcare prices and price growth.

“In the last ten months of 2023, the newly established RHBAS met 20 times, and in the process set the standard, and set it high, for public engagement,” said RHBAS Co-Vice Chair Rep. Paul Baumbach. “I am incredibly proud of the dedication and hard work of the members of the subcommittee, the supporting staff, and of the public.

“We worked together to tackle a multi-billion-dollar challenge, and in the process identified multiple steps to resolve this problem over decades, which is appropriate, given that the problem was created over decades. I look forward to the ongoing work of the RHBAS, and I am hopeful that other public bodies adopt some of the public engagement practices pioneered by the RHBAS.”

The subcommittee also recommended modifying the state’s calculation for the portion of the state share for healthcare that the state pays for retirees. The percentage is based on the number of years of service for each retiree. Currently, the state pays 100% of its share for workers who have 20 years or more of service and pay a smaller percentage for workers who have 15-20 of state service.

The subcommittee recommended requiring workers hired on or after January 1, 2025 to serve at least 25 years to receive the 100% state share, with those working 15-25 years receiving a smaller percentage.

The panel recommended that the state change healthcare benefits provided to Medicare-eligible retirees hired on or after January 1, 2025 with two Medicare Supplement Plans available, one similar to Medigap G and one similar to Medigap L.

The full list of recommendations and additional details can be found in the full subcommittee report.

“I am proud to have been a part of this committee and of the work we have accomplished. We took the time to thoroughly dig into the issues and listen to what the public had to say,” said Delaware State Education Association Executive Director Jeff Taschner. “The crucial feedback from public comments guided and informed our work, it allowed us to come up with

recommendations that meet the needs of retirees and address the concerns they raised throughout the process. If adopted, the RHBAS recommendations will address funding issues that seemed insurmountable and will begin the long overdue process of addressing healthcare pricing issues that negatively impact all Delawareans.”

“The subcommittee showed the willingness of all those involved to come together and resolve a difficult situation in a way that maintains and fulfills the state’s commitment to retirees and their obligation to current employees when they retire,” said Delaware Public Employees Council 81 Executive Director Michael Begatto, a subcommittee member representing thousands of state workers. “Retirees and current workers who were concerned should be pleased with the outcome and feel relieved and secure that they will be protected if these recommendations are accepted. I’m grateful that all parties recognized that our state workers who provide so many services to Delawareans deserved this commitment and worked together to find a path forward. I look forward to these recommendations being approved to honor the work of this subcommittee and stand by our dedicated state retirees and employees.”

“Thanks to the leadership exhibited by Lt. Governor Bethany Hall- Long, Sen. Bryan Townsend and Rep. Paul Baumbach, we were able to get to a place where retiree health care is no longer under imminent threat,” said Delaware State Troopers Association legislative agent Bill Oberle, who served on the subcommittee. “I have served on numerous committees during my legislative and post-legislative career. This subcommittee was unique in that our activities were totally inclusive and thoroughly transparent. It should serve as a model moving forward. It is my sincere hope that the governor, members of the General Assembly and members of the SEBC adopt our recommendations in totality. It represents a rare opportunity to be proactive.”

The RHBAS will continue to meet this year to further discuss the issue of retiree healthcare benefits and explore solutions.


New Claymont Transportation Center Dedicated

The new Claymont Transportation Center was dedicated today as the Harris B. McDowell, III Transportation Center and full service will begin on Monday, December 4, 2023.

Secretary of Transportation Nicole Majeski was joined by Delaware Transit Corporation CEO John Sisson, Lt. Governor Bethany Hall-Long, the U.S. congressional delegation and numerous federal, state, and local officials to mark the completion of the new $90 million transportation center.

“The opening of the Harris B. McDowell III Transportation Center is a major milestone in the continued economic redevelopment of Claymont and will serve as an important gateway for residents, businesses, and visitors to Delaware,” said Governor John Carney. “As a proud Claymont native, I couldn’t be more pleased to help celebrate the completion of this project, and I want to thank our team at DelDOT for their hard work.”

In 2016, Delaware’s Congressional Delegation of U.S. Senators Tom Carper and Chris Coons and then-Congressman John Carney helped secure a $10 million Transportation Investment Generating Economic Recovery (TIGER) grant from the U.S. Department of Transportation for the construction of the station.

“The new Claymont rail station is proof of what is possible when local communities work with the state and federal government to bring our infrastructure into the 21st century and support economic development,” said Senators Carper and Coons and Congresswoman Lisa Blunt Rochester. “After the closing of the former Evraz steel mill, Delaware rallied behind the Claymont community to help turn economic adversity into an opportunity for redevelopment and job creation. Today, we are celebrating an important step forward in Claymont’s revitalization through the opening of this modern and accessible train station.”

“This was an incredibly complex project many years in the making, and from the beginning hundreds of people from multiple agencies have been involved in this effort with the singular goal of providing Claymont with a first-class transportation center we can all be proud of,” said Secretary of Transportation Nicole Majeski.

John Sisson, CEO of the Delaware Transit Corporation added, “Anyone that has utilized the former Claymont Station knows how challenging it was to catch a train. The design of the new transportation center focused on the user experience, making public transit an easy, convenient, and smart choice.”

The new center, boasting over 800 parking spaces including 13 EV charging stations, two ADA-compliant high-level covered platforms with wind screens, benches and USB charging ports, bicycle racks and repair stations, real-time passenger information displays, and vending machines, opens for SEPTA train and DART and SEPTA bus service on Monday, December 4, 2023.

In October 2022, Governor Carney signed legislation sponsored by State Senator Sarah McBride and State Representative Debra Heffernan to formally name the new Claymont Transportation Center in honor of Senator Harris B. McDowell, III, who represented the First Senate District from 1976 until 2021, becoming the longest-serving member in the history of the Delaware General Assembly.

Information on SEPTA service to Claymont and other Delaware locations can be found here. 

 


2023 Lt. Governor’s Challenge Winners Announced

Domestic violence services, child educator support, therapy for kids, oral feeding education, and accessible physical fitness among the list of unique programs being awarded at October 25 event.

DOVER, Del. – The 2023 Lt. Governor’s Wellness Leadership Challenge has announced this year’s award recipients. The six winning submissions came from individuals, organizations and institutions across Delaware who made a commitment to enacting better health and wellness for their communities, ultimately helping to elevate the well-being, productivity, and prosperity of the state of Delaware. The mission of the annual Lt. Governor’s Challenge is to recognize local health and wellness programs, policies or environmental changes that help improve the quality of life of Delawareans. 

“The winners of the 2023 Challenge have truly raised the bar to meet the needs of the community and spearhead initiatives to support the physical, mental, and emotional well-being of Delawareans,” said Lt. Governor Bethany Hall-Long, PhD, RN. “These initiatives have the power to change people’s lives and I couldn’t be prouder of their unwavering dedication to fostering a healthier community in the First State.”

The Challenge is more than just a recognition program. It offers applicants the opportunity to demonstrate that they are drivers of change among family, neighborhoods, workplaces, faith-based organizations and institutions, communities or schools. While both categories of champions exemplify the Challenge’s mission of encouraging healthy lifestyles, recipients of the Delaware Wellness Hero Award have shown the highest degree and most comprehensive PSE (policy, system or environmental) changes to address their specific public health issue, while winners of the Delaware Health Leader Award are being applauded for taking significant steps to improve the overall health of their community. The 2023 Lt. Governor’s Challenge list of awardees includes:

Delaware Wellness Hero Award

  • Erin Ridout, Delaware Coalition Against Domestic Violence – Implemented statewide services to address domestic violence (DV) as a health issue and integrate DV and health services. The services have helped more than 600 survivors of DV throughout the state. 

  • Delaware Institute for Excellence in Early Childhood – Created a health and wellness program to support family childcare educators by improving mental health, physical wellness and providing social support to reduce stress and lower the risk of chronic disease. Participants reported that the program significantly reduced both personal and work-related stress.

  • Providence Creek Academy Charter School – Created a program to provide alternative therapeutic methods, such as art and farm therapy to students experiencing loss and grief. Making this therapy accessible to students has decreased absences and improved the mental health of participants. This program could serve as a case-study to broaden the program to schools statewide.

Delaware Health Leader Award

  • Nemours Children’s Health – Created the First Oral Feed Initiative for parents of infants with congenital heart defects to educate and foster important early feeding experiences, such as skin-to-skin contact, breast and bottle feeding. The program achieved a 77% participation rate at Nemours and has achieved national participation amongst other children’s hospitals. 

  • Sussex County Health Coalition – Improved physical health by providing grants for libraries to conduct exercise classes and provide access to community health workers who provided health and wellness coaching. Their program educated underserved residents about health and fitness and led to improved physical health outcomes. 

  • Face The Facts Delaware – Provides resources and support to those who have lost loved ones to overdose or substance use disorder, as well as overdose awareness, Narcan training and other resources to help those in recovery. Thousands of people who have lost loved ones have found solace at their meetings. 

The Selection Process

All Challenge nominees completed an extensive application process with a requirement to feature an initiative that met the following criteria:

  • SUSTAINABILITY: The initiative should provide ongoing opportunity for healthier living, instead of being a one-off activity.

  • REACH: The initiative should seek to demonstrate improvements in the capacity to address the health needs of a community or a target population.

  • OUTCOME/IMPACT: The initiative should demonstrate measured improvements in access and/or increased opportunities for improving behavioral and physical health in the state.

A review committee including impartial judges from state government, nonprofits, and community leaders collaborated on selecting the winners. 

Making a Difference in Delaware

By engaging businesses, local organizations and individuals to be change-makers for health in their communities, the Lt. Governor’s Challenge spotlights and applauds those implementing solutions to create environments that support and sustain overall good health in the state.

The group of six award recipients will be recognized for their achievements by the Lt. Governor at an October 25th event; location to be announced. For more on the Lt. Governor’s Challenge, visit the website.


Delaware Launches ‘Ask the Question’ Campaign to Combat Veteran Suicide  

New campaign spearheaded by Lt. Gov. Hall-Long and Delaware Governor’s Challenge seeks to help identify military members and veterans with mental health concerns  

WILMINGTON, Del. — Lieutenant Governor Bethany Hall-Long and the Delaware Governor’s Challenge announced a new campaign on Thursday that aims to better identify suicide risk among military members and veterans. The “Ask the Question” campaign will be piloted at the Delaware Division of Substance Abuse and Mental Health’s Bridge Clinics.   

The campaign centers around breaking the stigma and identifying risk by first asking the question: Have you, or a member of your immediate family, ever served in the military? The goal is to connect Delawareans with service experience to resources that they’ve earned and help address their unique needs.    

“While we’ve taken steps to address suicide prevention, there are still far too many Delawareans reluctant to seek help and share their experiences. Our military members are especially at risk with veterans and service members 4 times more likely to die by suicide than civilian counterparts,” said Lt. Governor Bethany Hall-Long, Ph.D, R.N and co-chair of the Delaware Governor’s Challenge. Asking the question regarding service is just the entry point; this initiative is about ensuring veterans and service members are connected to the resources they’ve earned. I’m so grateful for the Delaware Governor’s Challenge team and the partnership of the DSAMH Bridge Clinics to specifically respond to the needs of our veterans and service members through the “Ask the Question” campaign.”  

Formed in 2022, the Delaware Governor’s Challenge is co-chaired by Lieutenant Governor Bethany Hall-Long and retired Major General Frank Vavala and is in collaboration with the Substance Abuse and Mental Health Services Administration (SAMHSA) and the U.S. Department of Veterans Affairs (VA). It is part of a national effort that seeks to expand mental health resources for the veteran community and implement suicide prevention best practices and policies for veterans, service members, and their families across the state by using a public health approach. There are three key priority areas:   

  • Identifying Service Members, Veterans, and Their Families (SMVF) and Screening for Suicide Risk   
  • Promoting Connectedness and Improving Care Transitions   
  • Increasing Lethal Means Safety and Safety Planning   

Delaware is home to more than 66,000 veterans, according to data from SAMHSA and the VA. Through this challenge, public-private partners are working to combine community-based strategies, prevention, and intervention to support service members and veterans, and build on plans for the First State.   

Communication is the key to breaking the stigma. We have to address veteran and military suicide head-on, and asking the question about risk in a sensitive, culturally competent manner is the first step,” said Major General Frank Vavala. “Our military members put their lives on hold to serve their country, we need to be there for them when they cry out for help.”    

“Ask the Question” serves as a call to action and has been adopted in other states participating in the national Governor’s Challenge, such as New Hampshire and Maryland. As part of Delaware’s “Ask the Question” pilot, Bridge Clinic staff will utilize a two-prong approach to identify and address suicide risk. Following the SAMHSA and VA best practice Columbia Protocol, anyone coming into the Bridge Clinics will be screened for suicide risk and asked about service status. If someone is identified as having service experience, then they will be offered a peer professional to help assess any underlying causes that may impact suicide risk like social determinants of health. Additionally, the campaign helps to connect Bridge Clinic staff with professional development opportunities on military cultural competency and resources from other states who are engaging with the Governor’s Challenge.   

“DSAMH is thankful to be a part of the ‘Ask the Question’ campaign. Asking the question, ‘Have you, or a member of your immediate family, ever served in the military?’ can lead to improved access to care and quality of care for our veterans. This initiative will engage and educate providers throughout Delaware about the importance of connecting with those who have served,” said Dr. Gerard Gallucci, MD MHS, Acting Medical Director for the Division of Substance Abuse and Mental Health.  

Are you a clinician, provider, family member, service member or veteran looking to get involved with the Delaware Governor’s Challenge? Here are a few ways to link with the team:  

  • Visit the website de.gov/governorschallenge to learn more   
  • Email bhc@delaware.gov to join a workgroup on a challenge priority area   

Additional Resources:   

  • Visit helpisherede.com   
  • Delaware Hope Line: Dial 1 (833) 9-HOPEDE   
  • Delaware 211: Dial 211 
  • National Suicide and Crisis Hotline: Dial 988; Veterans and their loved ones can now Dial 988, then press 1 to reach the Veterans Crisis Line