Free Service Has Been Helping Delaware Medicare
Recipients For More Than Twenty Years

Dover, DE–Insurance Commissioner Karen Weldin Stewart is pleased to announce that the ELDERinfo program will now be known as the Delaware Medicare Assistance Bureau or DMAB. ELDERinfo has been providing free, local assistance to Delaware’s Medicare recipients for 21 years, and it will continue to offer the same great services just with a new name. Commissioner Stewart stated, “With this new name we hope to reach more of the nearly 28,000 Medicare recipients in the state who are under age 65 and on Medicare due to a disability. Many of the younger Medicare recipients think the service is only for people age 65 and older. Additionally, many of the people today who are 65 and older do not feel ‘elderly’ and they reject terms that make them feel old. The new name better reflects the services that the program provides to the public. We think the new name will be a win-win for the staff and the public.”

As of September 2013, Delaware was home to 167,538 Medicare recipients which includes almost 28,000 individuals who are under the age of 65 and on Medicare due to disability. The program assisted 5,864 individuals in 2013 and helped Medicare recipients save more than two million dollars in prescription drug costs and $492,000 on Medicare Part B premiums. Approximately 18% of Delaware’s population receives Medicare benefits and that number is only going to grow as the Baby-Boomer generation turns 65.

According to Lakia Turner, director of the Delaware Medicare Assistance Bureau, the new name will hopefully reduce some confusion among the public because ELDERinfo often received calls from people who thought the program was a resource for all senior-related programs in the state. “DMAB is a free resource for Medicare recipients who have questions about Medigap plans, prescription drug coverage, Medicare Advantage, financial assistance programs and anything else related to Medicare,” said Ms. Turner. “Our phone number will remain the same: 1-800-336-9500. You can also send e-mails to DMAB@delaware.gov or find information on our updated website, www.delawareinsurance.gov/DMAB.”

The Delaware Department of Insurance and the Delaware Medicare Assistance Bureau are taking this time to remind disabled Medicare beneficiaries under the age of 65 that with the passage of Senate Bill 42, SB 42, in 2013 there are new Medigap (Medicare supplement insurance) options available to them but time to purchase the plans is limited. SB 42 became effective on January 1, 2014, and requires insurance companies that offer Medigap policies to people 65 and older to also offer the same policies to anyone under the age of 65 who qualifies for Medicare due to a disability.

Commissioner Stewart noted, “Existing Medicare beneficiaries under the age of 65 who had Medicare prior to January 1, 2014, only have until June 30, 2014 to purchase a Medigap plan under this law. Newly enrolled Medicare recipients under age 65 have six months to purchase one of these plans, from the time benefits begin. It’s very important that these individuals not wait until the last minute to compare plans or sign up, if they are interested. That’s why I encourage anyone with Medicare due to a disability under age 65 to call DMAB at 1-800-336-9500 today to get more information before their time to act expires.” The DMAB website, www.delawareinsurance.gov/DMAB, also has information about Medigap plans, including the 2014 Delaware Medicare Supplement Insurance Shopper’s Guide, which was just released yesterday.

The Delaware Medicare Assistance Bureau also offers free info sessions for people who are turning 65 and want to learn about the basic concepts of their Medicare coverage. Other info sessions are offered during the annual open-enrollment period (October 15-December 7) to help recipients review their prescription drug coverage for the upcoming year. Sessions are held at various counseling sites throughout the state. See the website, www.delawareinsurance.gov/DMAB, for a list of sites or call 1-800-336-9500. Volunteers are a vital part of the DMAB program and any individuals who would like to volunteer with DMAB are encouraged to call for more information. There will be volunteer training sessions hosted in July 2014.

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Delaware Department of Insurance: “Protecting Delawareans through regulation
and education while providing oversight of the insurance industry to best serve the public.”

Submitted pursuant to House Bill 175, 147th General Assembly

DOVER, Del. – This afternoon, Lt. Governor Denn, Chair of Delaware’s Workers’ Compensation Task Force, and business and legislative leaders made recommendations to Governor Markell and the General Assembly to stop the large workers compensation rate increases that are burdening Delaware businesses.

Governor Markell said of today’s report and recommendations, “I applaud the Lt. Governor’s work on this extremely important issue for Delaware’s business community. His leadership ensured that the task force acted swiftly and effectively to address the high rates that have burdened our employers. The bipartisan reform package outlined today represents the culmination of a great deal of work, commitment and compromise by everyone involved with the task force.”

The Workers’ Compensation Task Force was created on January 30, 2013 by the Delaware General Assembly and the Governor, and charged with an expedited review of Delaware law relating to workers’ compensation, the impact that the 2007 amendments to that law had upon workers’ compensation premiums, the reasons for recent increases in workers’ compensation premiums, and whether any additional changes to statutes, regulations, or practices are required to control growth in premiums. As detailed in the task force’s prior report, Delaware’s workers’ compensation premiums had risen by calendar year 2006 to be the third most expensive in the country. The primary reason for Delaware’s high premiums was generally agreed to be medical costs – the Delaware Compensation Rating Bureau (DCRB) indicated that in 2006, medical costs were 60% of total workers compensation system costs in Delaware, as compared to 40% in surrounding states.

The task force delivered its first set of recommendations in May 2013, and those recommendations were consolidated into House Bill 175 which passed the Delaware House of Representatives and Delaware State Senate unanimously. Among the provisions of House Bill 175 was one that continued the existence of this task force through June 30, 2014.

The task force’s recommendations fall into three areas:

1. Heightened Oversight of Insurance Carriers. These recommendations include consolidating the Data Collection Committee and the Health Care Advisory Panel into a single committee and a Ratepayer Advocate to be hired and overseen by the Workers’ Compensation Oversight Panel, with staff support to be provided by the Department of Labor.

2. Stricter Control on Medical Costs. These recommendations include directing the Workers’ Compensation Oversight Panel to create a new medical fee schedule, using multipliers of medical codes used by the Centers for Medicare and Medicaid Services, which results in a 33% savings from all providers (to be phased in over a three year period) and recommending that the General Assembly (through the Workers’ Compensation Oversight Panel) monitor both the rate impact of these recommendations and their impact upon providers as the recommendations are phased in, and make statutory adjustments in the fee schedule if appropriate.

3. Consideration of New Rating Organization. The task force recommends that DOI undertake a formal assessment of whether there should be a change in the rating organization used by Delaware insurance carriers, and include members of the task force who have expressed concerns about the current situation in that formal assessment.

“Lt. Gov. Denn deserves much of the credit for this proposal, without his expertise and leadership we might still be struggling with this issue,” said Senate President Pro Tem Patricia Blevins, D-Elsmere. “It is our hope that this proposal will result in real savings to businesses that have been struggling with ever-skyrocketing workers’ compensation rate increases.”

State Representative Ruth Briggs King (R-Georgetown), a member of the task force, said, “This bill is the result of months of work with employers, health care providers and insurers. I believe a great deal of thought and consideration went into crafting this legislation, which I believe will help reduce the uncertainty and escalating premiums for Delaware’s small businesses.”

“I think we had an excellent group of task force members, committed to helping the business community, and I can’t thank them enough for all of their hard work,” said Senator Gerald Hocker (R-Ocean View), both a panel member and the owner of several Sussex County businesses. “It turned out to be a great idea to keep this task force together for another year, and I think the legislation that comes out of this effort is going to provide significant cost savings to the employers of the state of Delaware.”

“The members of the Worker’s Compensation Task Force have taken on the task of improving critical elements to Delaware’s competitiveness when it comes to job creation and business expansion,” said Rep. Bryon Short, D-Brandywine Hundred. “Through great effort, we have tackled one of the most important factors driving up workers compensation costs for Delaware’s employers. I believe the adoption of a relative value units-based fee schedule will have a meaningful impact on the premiums paid in Delaware. Our work is not done. Other important areas resulting in high premiums for Delaware businesses need to be examined in the coming year, and we will continue to look out for businesses and the workers they employ.”

“It was not easy to get to this point in making changes to the workers compensation payment system,” said Rich Heffron, President of the Delaware State Chamber of Commerce. “Through the dedication and hard work of my fellow Task Force members – along with Lt. Governor Denn’s leadership – today we are able to propose changes that can be expected to lower Delaware’s workers compensation rates. We still need to determine why Delaware’s cases take longer to settle, and how insurance companies calculate their reserves, but that is for a future Task Force to examine.”

A copy of the report is included, as are separate statements from the Delaware Compensation Rating Bureau, Medical Society of Delaware, and the Delaware Department of Insurance, included at their request.

Liberty Insurance Corp. and LMI Insurance Corp. Target 2014

Medical Society of Delaware’s May 9, 2014 Workers’ Comp Task Force Statement

Lt. Governor Denn’s DOI Workers’ Compensation Task Force Letter from May 12, 2014

DCRB Comments to May 14, 2014 Task Force Report

Workers Comp Report Presented May 15, 2014

Dover, DE – On Thursday, May 15, 2014 at 1:00pm, Lt. Governor Matt Denn will host a press conference to present the Workers’ Compensation Task Force Report to the Governor and the General Assembly, submitted pursuant to House Bill 175, 147th General Assembly. He will be joined by members of the Task Force – including Senators Blevins and Hocker, Representatives Briggs-King and B. Short – and the Governor, who will all make remarks, along with Rich Heffron of the State Chamber and others.

BACKGROUND – Created by House Joint Resolution 3, the task force was established on January 30, 2013 by the General Assembly and Governor to address the 34% increase in average workers compensation rates over the prior two years. Those rate increases increased costs for Delaware businesses and made it harder for them to compete for bids with businesses from neighboring states. On May 13, 2013, the task force made their first set of recommendations to Governor Markell and the General Assembly to stop the large workers’ compensation rate increases that burden Delaware businesses. The General Assembly accepted the recommendations unanimously, including keeping the task force in existence through June 30, 2014, both so that it could consider some issues that it did not have time to discuss during the short time that it had to make recommendations, and so that it could monitor the impact of its recommendations and suggest stricter measures with respect to medical costs if necessary.

The task force stated in the 2013 report that if the reforms recommended in that report were not successful in controlling workers compensation premium increases, then the task force would recommend stricter measures to control premiums. The task force believes that the 11.4% to 14% increase in rates resulting from the last filing was an unacceptable result, and that rates need to be reduced.

The report to be issued on Thursday offers those stricter measures.

Thursday, May 15, 2014
1:00pm
Tatnall Building (next to Legislative Hall)
3rd Floor – Governor’s Press Room
150 Martin Luther King, Jr. Blvd. South
Dover, DE 19901

Insurance Commissioner Karen Weldin Stewart Announces Continued Growth In Delaware’s Captive Program

Dover, DE–Despite facing increased competition due to the growing number of captive insurance domiciles, Delaware grew its number of captive insurers in 2013. The year-end 2013 numbers are 298 licensed captives with 266 being active. As of year-end 2012, Delaware had licensed 212 captive insurers with 192 being active. Delaware experienced a 40 percent increase in licensed captives in 2013. Commissioner Stewart noted, “Delaware service providers, such as attorneys and accountants, are providing services to the captive industry at a greater rate than at any other time in the department’s history. This shows that the captive bureau is meeting, and even exceeding, its statutory mission of expanding economic development.”
According to Steve Kinion, director of the captive bureau, the growth resulted from industry’s recognition that Delaware is a premier captive domicile. Kinion stated, “In 2012 Delaware was the world’s 10th largest and 3rd largest U.S. domicile. While we remain the third largest U.S. domicile, our global reach and presence has significantly increased.” Commissioner Stewart added, “One of the attributes of domiciling in Delaware is that captive insurers can take advantage of Delaware’s premier entity laws. No other jurisdiction integrates business and corporate laws with alternative risk transfer like Delaware.”

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. In 2005, the Delaware General Assembly passed House Bill 218, modernizing Delaware law regarding the formation of captives and positioning Delaware to become a home to the growing number of captive insurance companies being created by companies worldwide. Delaware’s sophisticated corporate laws, judiciary and financial infrastructure make it the preeminent jurisdiction for business. These benefits are extended to captive insurance companies through the Delaware Captive Insurance Program.

For more information about Delaware’s captive insurance program visit http://captive.delawareinsurance.gov/
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Delaware Department of Insurance: “Protecting Delawareans through regulation and education while providing oversight of the insurance industry to best serve the public.”

Dover, DE–Delaware Insurance Commissioner Karen Weldin Stewart announced today that the recent Obama administration decision to allow for the two-year extension of health plans that are not compliant with the Affordable Care Act (ACA) does not apply to the state of Delaware, as per state law.

Commissioner Stewart stated, “Delaware law, as currently written, does not allow for the extension of non-compliant health plans after January 1, 2014. Furthermore, allowing the two-year extension of previously cancelled and non-compliant plans has the potential to raise premiums for everyone and could disrupt the market in Delaware.”

House Bill 162 with House Amendment 1 was passed in 2013 by the 147th General Assembly to bring the Delaware code into compliance with the ACA. The law applies to all individual and group health insurance contracts, as applicable, issued or renewed on or after January 1, 2014.

On November 14, 2013 the Obama administration provided insurers the option, if permitted by their state, to renew their current policies, for one year, for current enrollees without adopting all of the 2014 market rule changes. On November 25, 2013, Commissioner Stewart announced that an agreement had been reached with carriers to offer early renewals for cancelled or non-compliant policies that were to end on, or before, March 31, 2014.

Consumers that were affected by that agreement had until December 31, 2013 to renew their policy. Consequently, any individuals that renewed their policy for one year by December 31, 2013 will not be affected by this new announcement.

Commissioner Stewart further stated, “I would like to take this opportunity to remind consumers who do not have health insurance coverage that the open-enrollment period to sign up for a new plan will close on March 31, 2014. Individuals who do not have health insurance after this date may be subject to a tax by the IRS next year. Many individuals may qualify for subsidized plans through the Delaware’s Health Insurance Marketplace, Choose Health Delaware. Plans are also offered outside the marketplace but they are not eligible for federal subsidies to help offset the cost, if you qualify for assistance.”

Please note that the Delaware Department of Insurance does not run the state’s Health Insurance Marketplace, Choose Health Delaware. Individuals with questions about subsidies and plans offered through the marketplace should visit www.choosehealthde.com or call 1-800-318-2596.

For more information about health insurance please visit the Delaware Department of Insurance website at www.delawareinsurance.gov.

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Delaware Department of Insurance: “Protecting Delawareans through regulation and education while providing oversight of the insurance industry to best serve the public.”