Under a new law, Delaware must offer its retired state employees Medicare supplement plans rather than Medicare Advantage plans, Bay to Bay News reported June 26.
The law prevents the state from offering Medicare Advantage to currently retired state employees. The state could still consider Medicare Advantage coverage for employees hired in 2025 and beyond.
In 2022, Delaware awarded Highmark Delaware a three-year contract to manage a Medicare Advantage plan for its retired employees. RiseDelaware, a retiree advocacy group, successfully sued to block the switch. The group argued the state did not account for public input in its decision-making.
"It is hard to believe that, after all this time, Medicare Advantage is in the rearview mirror," RiseDelaware said in a June 26 statement.
Delaware Gov. John Carney did not sign the bill, but because he took no action on the legislation for 10 days after its passage, it will become law, per the state constitution. Mr. Carney vetoed a companion bill that would change the structure of the state's retiree benefits committee, Bay to Bay News reported. The proposed changes include adding more retirees appointed by the legislature to the committee, and removing some seats appointed by the governor.
The Delaware House of Representatives overrode Mr. Carney's veto, the first time in 47 years that the state legislature has overruled the governor.
The bill is designed to "prevent that nightmare we went through from happening again," the bill's sponsor told Bay to Bay News, referring to the court battle over the Medicare Advantage plan in 2022.
In a June 26 statement, Mr. Carney said the proposal would remove needed expertise from the state's retiree benefits committee and do nothing to rein in healthcare costs.
"Over the long term, these changes will likely lead to higher taxes, reduced state services, or a greater cost burden on active state employees, including teachers, law enforcement officers and other public servants. That is unacceptable," Mr. Carney said.
The Delaware Senate must approve the veto for the law to take effect, according to Bay to Bay News.
Retired public employees in other states have also pushed back on Medicare Advantage plans, citing concerns about increased prior authorization and narrower networks. In New York City, a retiree advocacy group successfully sued to prevent the implementation of an Aetna Medicare Advantage plan. The case is still being appealed.