Wilmington – Insurance Commissioner Karen Weldin Stewart expressed hope that the passage of Federal health care reform Sunday evening and the upcoming reconciliation in the Senate would begin the long journey to ultimately addressing the health care needs of all Delawareans. 
                                      
Commissioner Stewart said, “History will look kindly on this first major step of  President Obama, Vice President Biden and Speaker Pelosi if this landmark piece of legislation begins to put the citizens’ interests first, is administered successfully, funded properly, and brings down costs while elevating the health of our nation.”

 The Commissioner continued, “The legislation seems to give state regulators a healthy degree of autonomy and flexibility while forging a much needed partnership between the states and the federal government.  There are however, a number of outstanding issues.  They include:

• Developing an effective individual mandate that encourages the young and healthy to enter the market;
• Making certain that rates are reduced for small businesses, including high risk businesses facing very high premiums while providing mechanisms that would inspire healthy small businesses to enter the market; 
• Changing the way health care is delivered, reimbursed and accessed to ensure that the citizens’ interests are paramount while at the same time bringing costs under control.”

The Commissioner applauded the bill for its direct impact on Delawareans by noting that it:

• Guarantees the issuance of health insurance in the individual market;
• Eliminates pre-existing condition exclusions
  (With children this will begin immediately);
• Prohibits annual and unreasonable lifetime limits;
• Reforms rating factors to eliminate ratings based on health status; and
• Creates state-based health insurance exchanges.

Commissioner Stewart concluded, “The bill recognizes that state insurance regulators are best equipped to educate consumers, field complaints, and regulate health insurers. It also wisely places on the states the responsibility of implementing the reforms to ensure their long term success while envisioning significant flexibility for states to tailor the new system to their marketplace, demographics, health care delivery system, etc., going beyond the minimum federal standards.   Finally, state regulators will have considerable say in the development of those federal standards.  There is much more to do but with the grants to the states the bill provides, however, it remains our duty to implement the major changes by the required year of 2014.”

The Delaware Department of Insurance (“DOI”) consists of five divisions: (1) the Bureau of Examination, Rehabilitation & Guaranty: (2) the Consumer Services & Investigations Division; (3) the Producer Licensing & Continuing Education Division; (4) the Fraud Prevention Bureau; and (5) the Bureau of Captive and Financial Insurance Products.  The DOI is tasked with ensuring reliable insurance coverage at reasonable rates for Delaware consumers while ensuring their claims are paid in full and in a timely manner.  The DOI is an entirely self-funded agency with a yearly contribution to the Delaware General Fund that is approximately five times the amount of its annual operating budget.

 

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Contacts:
Elliott Jacobson (302) 674-7303; (202) 294-3266 cell
Michael Gould (302) 674-7304