A Delaware retiree advocacy group is suing the state over its decision to move retired state employees to a Medicare Advantage plan managed by Highmark Delaware, Delaware Public Radio reported Sept. 27.
The advocacy group, RiseDelaware, is arguing that the state's Pension Benefit Committee did not adequately collect input from lawmakers and retirees, according to the report.
The Pension Benefit Committee awarded Highmark a three-year contract in February to administer the Medicare Advantage plan for 25,000 retired state employees, according to the report.
Former state Sen. Karen Peterson, a plaintiff in the lawsuit, said she and others are concerned about the "extensive list" of prior authorization requirements the Medicare Advantage plan would introduce. She also argued the new plan is more likely to deny coverage for medical procedures than the retirees' current traditional Medicare plan.
Gov. John Carney told state lawmakers the agreement with Highmark will include adjustments made in response to concerns, according to the report. Those changes include a four-month delay in implementing prior authorization requirements and quarterly reporting on denial of benefit rates.
The Medicare Advantage plan will go into effect Jan. 1, pending the outcome of the lawsuit, according to the report.