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Secretary Walker Sends Report on Progress Toward Implementing a Health Care Spending Benchmark to Joint Finance Committee Co-Chairs

December 20, 2017

NEW CASTLE (Dec. 20, 2017) – Delaware Health and Social Services Secretary Dr. Kara Odom Walker sent to the Joint Finance Committee Co-Chairs of the General Assembly and the Office of Management and Budget on Dec. 15 her report on the feasibility and progress toward creating a total cost of care, health care spending benchmark, writing “the importance of accelerating these efforts is now critical.”

The report – a requirement of Section 192 of the budget bill, House Substitute 1 for HB 275 – makes the case for health care spending and quality benchmarks as necessary tools for better understanding and directing health care quality and spending growth in Delaware, as envisioned by House Joint Resolution 7. Signed into law Sept. 7 by Governor John Carney, HJR7 authorizes DHSS to consult with stakeholders to establish a health care spending benchmark as a way to evaluate the total cost of health care in the state. Delaware ranked No. 3 in the nation in per-capita health care spending in 2014 – the latest year data is available – according to the Centers for Medicare and Medicaid Services (CMS). The CMS analysis of all insurance payers – Medicare, Medicaid and private – found per-capita spending in Delaware was $10,254, which is higher than the U.S. average of $8,045. Without changes, the analysis estimates Delaware’s total health care spending will more than double from $9.5 billion in 2014 to $21.5 billion in 2025.

“Rising healthcare costs are unsustainable for Delaware families, businesses, and our state government,” said Governor John Carney. “That’s why we are creating this healthcare benchmark – to help reduce costs while improving the standard of care that Delawareans receive. This report identifies steps we can take to meet both of those goals.”

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