Delaware 152nd General Assembly (2023-2024) Status: Enacted Bipartisan · 4 D · 2 R cosponsors

SB 29 — AN ACT TO AMEND TITLE 29 OF THE DELAWARE CODE RELATING TO THE STATE EMPLOYEE BENEFITS CONSOLIDATION ACT.

Last action — Signed by Governor

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  1. ✓
    Introduced
  2. ✓
    In Committee
  3. ✓
    Passed Senate
  4. ✓
    Passed House
  5. ✓
    To Executive
  6. 6
    Enacted

This bill has been enacted into law. Introduced January 12, 2023. Enacted.

Prognosis

Likely to advance 98% · high confidence

Where this bill stands today.

Odds of enactment

High

How often bills like it became law.

  • Enacted

    Current position in the legislative process.

  • 10 sponsors

    10 primary, 0 co-sponsors signed on.

  • Bipartisan support

    Sponsored across 2 parties (4 D · 2 R) — cross-party backing.

  • Cleared a recorded vote

    Passed 2 recorded votes so far.

Prognosis reads this bill's own signals — stage, sponsorship breadth, committee status, recorded votes and cross-state momentum. Odds come from a model trained on which bills have become law.

Summary

To foster sustainability in state retiree healthcare benefits and the development of a plan for strong benefits beyond the current Medicare Supplement plan offered through January 1, 2024, this Act does all of the following: 1. Expands the membership of the State Employee Benefits Committee by adding a state retiree to the Committee and adding an additional representative from public sector union organizations; 2. Requires the Controller General to provide comprehensive biannual public reports to the General Assembly regarding the work of the State Employee Benefits Committee; and 3. Establishes the Retiree Healthcare Benefits Advisory Subcommittee of the State Employee Benefits Committee, whose membership will include three state retirees and four members of the General Assembly, and whose charge includes holding public meetings and issuing recommendations to the Governor and the General Assembly by May 1, 2023.

Bill Text

What changed in the latest version

169 added · 21 removed

169 line(s) added, 21 removed.

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Townsend DELAWARE STATE SENATE 152nd GENERAL ASSEMBLY SENATE AMENDMENT NO.
Townsend & Sen.
1 TO SENATE BILL NO.
Sokola & Sen.
29 AMEND Senate Bill No.
Lockman & Sen.
29 on line 59 by adding the following after “2-year terms.”:
Hocker & Sen.
“Appointed members may not attend Committee meetings through a designee, but may attend subcommittee meetings through a designee, with the exception of the Retiree Healthcare Benefits Advisory Subcommittee.” FURTHER AMEND Senate Bill No.
Pettyjohn & Rep.
29 on line 125, by adding the following after “of the Subcommittee.”:
Longhurst & Rep.
“Appointed members may not attend Subcommittee meetings through a designee.” FURTHER AMEND Senate Bill No.
Schwartzkopf & Rep.
29 by deleting “.” at the end of line 140 and inserting the following in lieu thereof:
Minor-Brown & Rep.
“, including options to maintain their current coverage similar to residents in other states that offer a choice to buy into a Medicare Supplement plan.” SYNOPSIS This amendment precludes appointed members of the State Employee Benefits Committee from attending Committee meetings through a designee.
Ramone & Rep.
This amendment also precludes appointed members of the Retiree Healthcare Benefits Advisory Subcommittee from attending Subcommittee meetings through a designee.
Yearick DELAWARE STATE SENATE 152nd GENERAL ASSEMBLY SENATE BILL NO.
The amendment adds to the duties of the Retiree Healthcare Benefits Advisory Subcommittee, by requiring the Subcommittee to evaluate options that would allow state retirees to maintain their current coverage, similar to residents in other states that offer a choice to buy into a Medicare Supplement plan.
29 AN ACT TO AMEND TITLE 29 OF THE DELAWARE CODE RELATING TO THE STATE EMPLOYEE BENEFITS CONSOLIDATION ACT.
WHEREAS, promoting and protecting the health and wellness of Delaware’s senior citizens is one of the highest priorities of the General Assembly;
and WHEREAS, State pensioners served the Delaware community for years and deserve quality healthcare through a sustainable State-funded plan;
and WHEREAS, over the past several years, the State Employee Benefits Committee (SEBC) and the Retirement Benefit Study Committee (RBSC) held many public meetings to study State retiree healthcare benefits and found that under the current state pensioner healthcare plans, vesting schedules, and funding models that the retiree benefit trust fund (“trust fund”) is woefully underfunded and unsustainable;
and WHEREAS, specifically, the RBSC’s analysis indicated a current shortfall of $10 billion and a projected shortfall of $37 billion in the trust fund by 2050 if the 2022 status quo continues;
and WHEREAS, the SEBC and RBSC analyses and public meetings indicated that a transition to a Delaware-specific Medicare Advantage plan, alongside higher contributions in the annual State budget to the trust fund and additional measures, would enable the State to continue to provide a strong package of healthcare benefits to State retirees on Medicare while also stabilizing the trust fund;
and WHEREAS, the SEBC, which has the legal responsibility to establish and oversee retiree healthcare, competitively bid the administration of the State Group Health Insurance Plans offered to State pensioners as the previous five-year Medicare Supplement contract prepared to expire on January 1, 2023;
and WHEREAS, after many public meetings, in early 2022, the SEBC received and awarded a bid by Highmark Blue Cross Blue Shield Delaware (“Highmark Delaware”) to provide retiree healthcare under a Medicare Advantage plan, beginning January 1, 2023 (the “State Medicare Advantage Plan” or “Plan”);
and WHEREAS, on June 28, 2022, the Governor signed the Fiscal Year 2023 state budget, which passed the General Assembly with overwhelming bipartisan support, included language that recategorized the State plan from Medicare SD :
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01/12/2023 03:53 PM Supplement to Medicare Advantage, and included one-time supplemental funding for the trust fund equal to one percent of the prior year’s budget;
and WHEREAS, in the months after the Governor signed the FY23 budget, it became clear that many State pensioners were not aware of the SEBC and RBSC’s public meetings and did not have an understanding of the forthcoming changes, and that some of the terms of the forthcoming changes themselves were still being negotiated;
and WHEREAS, after realizing that the impending transition in health plans was unexpected news to many State retirees, members of the General Assembly organized a series of public meetings throughout Delaware to solicit public input and to provide details and clarification about the State Medicare Advantage plan;
and WHEREAS, in response to legislators’ and public input, the Governor’s cabinet and staff negotiated for stronger transparency and accountability provisions of the contract with Highmark Delaware;
and WHEREAS, following a legal challenge to the transition to the Plan, on October 19, 2022, the Superior Court issued an opinion and order staying the implementation of the Plan;
and WHEREAS, it is in the interest of all Delawareans, including State retirees, that changes to State retiree healthcare benefits and ongoing annual funding for the trust fund are effective in stabilizing the trust fund while also continuing to provide strong, effective, and sustainable healthcare to State retirees;
and WHEREAS, following the October 19, 2022, opinion and order from the Superior Court, the retiree healthcare benefits under the previous Medicare Supplement plan have been extended until at least January 1, 2024, and there now is a need to consider the benefits and fiscal impact of any plan that will commence thereafter.
NOW, THEREFORE:
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:
Section 1.
Amend Chapter 96, Title 29 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:
§ 9601.
Title.
This chapter shall be known as the “State Employee Benefits Consolidation Act.” § 9602.
State Employee Benefits Committee.
(a) There is hereby established a State Employee Benefits Committee (“Committee”).
The Committee shall be comprised of the Lieutenant Governor, the Insurance Commissioner, the Chief Justice of the Supreme Court, the State Treasurer, the Director of the Office of Management and Budget, the Controller General, the Secretary of the Department of Human Resources Resources, and the Secretary of Health and Social Services, or their designees.
designees, and 1 State retiree, appointed by the Governor.
In addition, the Governor shall appoint 1 2 Committee member members, 1 appointed SD :
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01/12/2023 03:53 PM by the President Pro Tempore of the Senate, and 1 appointed by the Speaker of the House of Representatives, shall be appointed from among the following persons organizational representatives:
The President of the Delaware State Education Association or his or her designee, the Executive Director of the American Federation of State County and Municipal Employees or his or her designee, the President of the Correctional Officers Association of Delaware or his or her designee, or and the President of the Delaware State Troopers Association or his or her designee.
The appointment term shall be for 3 years.
Of the initial 2 organizational representatives appointed, 1 must be appointed for a 1-year term, and 1 must be appointed for a 2-year term.
Thereafter, all members shall serve 2-year terms.
An organizational representative appointed by the Governor, after serving a 3-year term, shall not serve another term until all the organizational representatives named in this subsection have served a 3-year term.
The Director of the Office of Management and Budget and the Secretary of Human Resources shall co-chair the Committee.
(b) The State Employee Benefits Committee shall have the following powers, duties and functions:
(1) With the exception of deferred compensation pursuant to Chapter 60A of this title, and any other investment or retirement savings plan, control and management of all employee benefit coverages including health-care insurance and blood bank, pursuant to Chapters 51 and 52 of this title;
state employees group life insurance pursuant to Chapter 32 of Title 18;
and all other currently existing and future employee benefits coverages, including but not limited to all forms of flexible benefits, dental, vision, prescription, long-term care and disability coverages.
(2) Selection of all carriers or third-party administrators necessary to provide coverages to State employees.
(3) Authority to contract on an insured or self insured basis.
(4) Authority to adopt rules and regulations for the general administration of the employee benefit coverages.
(5) Authority to make and enter into any and all contracts with any agency of the State, or any outside agency, for the purpose of assisting in the general administration of this section.
(c) All members of the Committee and all legal, actuarial and administrative personnel shall be entitled to reimbursement for those travel and other expenses made necessary by their official duties that are approved by the Director of Statewide Benefits.
(d) The Committee shall hold regular meetings at least once every 6 months, which meetings shall be open to the public in accordance with § 10004 of this title.
§ 9604.
§ 9603.
Duties of the Secretary of Human Resources.
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01/12/2023 03:53 PM 83 (a) The duties of the Secretary of Human Resources under this chapter shall include:
(1) The placement of all insurance with such carriers as the Committee deems appropriate.
(2) The operation of the self-insurance fund, when and if a self-insurance fund shall be established by the Committee for the operation of a self-insurance program.
(3) Centralized responsibility for the operation of the State employee benefits program vested in a single agency with an adequate staff of legal, actuarial and administrative personnel.
(4) The establishment and operation of an open bid procedure to be maintained for purchasing new employee benefits coverage from carriers and renewing existing contracts with such carriers which will permit the free forces of market competition to operate to the benefit of the state employee benefits coverage programs.
(5) The maintenance in a safe and secure place of all policies with commercial insurers and all records necessary and pertinent thereto.
(6) The maintenance in a safe and secure place of all records, accounts, claims files, statistical studies and other such records and documents necessary and proper in the administration of any self-insured program, when and if the Committee deems it necessary and proper to utilize same.
(7) Prompt notification to insurance carriers or third party administrators of the names and other necessary data related to the employees and pensioners covered by State employee benefits programs and of all changes and additions thereto, and payment of such obligations as are incurred pursuant to this section, including the cost of premium or subscription charges for insurance coverage upon the written request of any State employee or pensioner from the funds appropriated therefore and, in the event such appropriated funds are inadequate, pay such additional sums as may be required from those moneys in the General Fund not otherwise appropriated.
(8) Communication to State employees of all State employee benefits coverages and any additions or changes of benefits affecting State employees.
(9) Authority to act as agent of the State to enter into a contract or contracts with the carrier or carriers for benefits programs for State employees and pensioners.
(10) Prompt notification of the health-care insurance carrier or third party administrator of the names and other necessary data related to the employees and pensioners covered by the State employees’ health insurance program and of all changes and shall pay such obligations as are incurred pursuant to this section, including the cost of premium or subscription charges for health-care insurance coverage upon the written request of any state employee or pensioner from the funds appropriated therefore and, in the event such appropriated funds are SD :
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01/12/2023 03:53 PM inadequate, pay such addition sums as may be required from those moneys in the General Fund not otherwise appropriated.
(b) The Controller General’s Office must provide comprehensive biannual public reports on the work of the Committee to the General Assembly by May 30 and November 30 of each year.
§ 9604.
Retiree Healthcare Benefits Advisory Subcommittee.
(a) There is hereby established a Retiree Healthcare Benefits Advisory Subcommittee (“Subcommittee”).
The Subcommittee shall be comprised of the Lieutenant Governor, the Insurance Commissioner, the Director of the Office of Management and Budget, the Secretary of Finance, the Secretary of the Department of Human Resources, 1 member of each caucus of the Delaware House of Representatives appointed by the Speaker of the House, and 1 member of each caucus of the Delaware State Senate appointed by the President Pro Tempore.
In addition, the Governor shall appoint 1 retired state employee from each County and 1 representative of a union of state employees, the Speaker of the House shall appoint 1 representative of a union of state employees, and the President Pro Tempore of the Senate shall appoint 1 representative of a union of state employees.
The Lieutenant Governor shall serve as Chair, and the members of the majority caucus from the House of Representatives and the Senate shall serve as Co-Vice Chairs of the Subcommittee.
The Delaware Department of Justice shall provide legal support and the Department of Human Resources shall provide administrative support to the Subcommittee.
Additional support shall be provided by the State Office of Pensions and Department of Finance as may be requested by the Chairs.
(b) The General Assembly recognizes the importance and urgency of addressing State retiree healthcare benefits.
Thus, the Subcommittee shall have the following powers, duties and functions:
(1) Conduct public meetings and receive public comment about current and future State retiree healthcare benefits, including the previously proposed Medicare Advantage Plan for State retirees, while taking into consideration the previous work of the State Employee Benefits Committee and the Retirement Benefit Study Committee.
(2) In the course of its work, consider how reporting and analyses regarding Medicare Advantage Plans nationwide relate to the terms of the previously proposed Medicare Advantage Plan for State retirees;
(3) Study, review, and evaluate the fiscal and other implications of the extension of the existing Medicare Supplement plan to January 1, 2024.
(4) Evaluate options for continuing to provide strong State retiree healthcare benefits in a fiscally sustainable way.
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01/12/2023 03:53 PM (5) By May 1, 2023, issue findings and recommendations to the Governor and the General Assembly about the foregoing as they relate to the Fiscal Year 2024 State budget.
SYNOPSIS To foster sustainability in state retiree healthcare benefits and the development of a plan for strong benefits beyond the current Medicare Supplement plan offered through January 1, 2024, this Act does all of the following:
1.
Expands the membership of the State Employee Benefits Committee by adding a state retiree to the Committee and adding an additional representative from public sector union organizations;
2.
Requires the Controller General to provide comprehensive biannual public reports to the General Assembly regarding the work of the State Employee Benefits Committee;
and 3.
Establishes the Retiree Healthcare Benefits Advisory Subcommittee of the State Employee Benefits Committee, whose membership will include three state retirees and four members of the General Assembly, and whose charge includes holding public meetings and issuing recommendations to the Governor and the General Assembly by May 1, 2023.
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Action History

  1. Signed by Governor

  2. Passed By House. Votes: 35 YES 5 NO 1 ABSENT

  3. Reported Out of Committee (Administration) in House with 5 On Its Merits

  4. Reported Out of Committee (Administration) in House with 5 On Its Merits

  5. Assigned to Administration Committee in House

  6. Passed By Senate. Votes: 17 YES 3 NO 1 ABSENT

  7. Amendment SA 1 to SB 29 - Passed By Senate. Votes: 20 YES 1 ABSENT

  8. Amendment SA 1 to SB 29 - Introduced and Placed With Bill

  9. Reported Out of Committee (Executive) in Senate with 7 On Its Merits

  10. Introduced and Assigned to Executive Committee in Senate

Sponsors

Sponsorship breakdown

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10 sponsors · 0 co-sponsors · 52 not signed on · 8 voted No

Sponsors (10)

Co-sponsors (0)

None.

Not signed on (52)

52 members have not signed on to this bill.

Show all 52 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Votes

SM

Passed 35 Yea · 5 Nay · 1 Other
Party YeaNayPresentNot Voting
Democratic 15500
Unaffiliated 7001
Republican 13000
Total 35501
% of votes cast 85%12%0%2%
How each member voted (41)
Member Party Vote
Michael Ramone — Yea
Paul S. Baumbach — Yea
Peter C. Schwartzkopf — Yea
Ruth Briggs King — Yea
Sean Matthews — Yea
Sherry Dorsey Walker — Yea
Stell Parker Selby — Yea
Valerie Longhurst — Not Voting
Cyndie Romer Democratic Yea
DeShanna U Neal Democratic Yea
Debra Heffernan Democratic Yea
Edward S. Osienski Democratic Yea
Eric Morrison Democratic Yea
Franklin D. Cooke Democratic Yea
Kendra Johnson Democratic Yea
Kerri Evelyn Harris Democratic Yea
Kimberly Williams Democratic Yea
Krista Griffith Democratic Yea
Larry Lambert Democratic Yea
Madinah Wilson-Anton Democratic Nay
Melissa Minor-Brown Democratic Yea
Nnamdi O. Chukwuocha Democratic Nay
Sean M. Lynn Democratic Nay
Sherae'a Moore Democratic Nay
Sophie Phillips Democratic Yea
Stephanie T. Bolden Democratic Yea
William Bush Democratic Yea
William J. Carson Democratic Nay
Bryan W. Shupe Republican Yea
Charles S Postles Jr. Republican Yea
Daniel B. Short Republican Yea
Jeff Hilovsky Republican Yea
Jeffrey N. Spiegelman Republican Yea
Jesse R. Vanderwende Republican Yea
Kevin S Hensley Republican Yea
Lyndon D. Yearick Republican Yea
Michael F. Smith Republican Yea
Richard G. Collins Republican Yea
Ronald E. Gray Republican Yea
Shannon Morris Republican Yea
Timothy D. Dukes Republican Yea

Official roll call →

SM

Passed 17 Yea · 3 Nay · 1 Other
Party YeaNayPresentNot Voting
Democratic 12001
Republican 3300
Unaffiliated 2000
Total 17301
% of votes cast 81%14%0%5%
How each member voted (21)
Member Party Vote
Kyle Evans Gay — Yea
Sarah McBride — Yea
Bryan Townsend Democratic Yea
Darius J. Brown Democratic Not Voting
David P. Sokola Democratic Yea
John "Jack" Walsh Democratic Yea
Kyra L. Hoffner Democratic Yea
Laura V. Sturgeon Democratic Yea
Marie Pinkney Democratic Yea
Nicole Poore Democratic Yea
Russell Huxtable Democratic Yea
S. Elizabeth Lockman Democratic Yea
Spiros Mantzavinos Democratic Yea
Stephanie L. Hansen Democratic Yea
Trey Paradee Democratic Yea
Brian Pettyjohn Republican Yea
Bryant L. Richardson Republican Yea
Dave G. Lawson Republican Nay
David L. Wilson Republican Nay
Eric Buckson Republican Nay
Gerald W. Hocker Republican Yea

Official roll call →

Subjects

healthcare labor health-insurance
Cross-referencing the record. Reading this bill against every other bill in the corpus by meaning, not keywords. Only the first open is slow. It’s instant for you after this. Matching · Ranking · Engrossing

Frequently asked questions

What does SB 29 do?
To foster sustainability in state retiree healthcare benefits and the development of a plan for strong benefits beyond the current Medicare Supplement plan offered through January 1, 2024, this Act does all of the following: 1. Expands the membership of the State Employee Benefits Committee by adding a state retiree to the Committee and adding an additional representative from public sector union organizations; 2. Requires the Controller General to provide comprehensive biannual public reports to the General Assembly regarding the work of the State Employee Benefits Committee; and 3. Establishes the Retiree Healthcare Benefits Advisory Subcommittee of the State Employee Benefits Committee, whose membership will include three state retirees and four members of the General Assembly, and whose charge includes holding public meetings and issuing recommendations to the Governor and the General Assembly by May 1, 2023.
Who sponsors SB 29?
SB 29 is sponsored by Stell Parker Selby, Lyndon D. Yearick (Republican), Trey Paradee (Democratic), Brian Pettyjohn (Republican), Peter C. Schwartzkopf, S. Elizabeth Lockman (Democratic), David P. Sokola (Democratic), Bryan Townsend (Democratic), Valerie Longhurst, and Michael Ramone.
What is the current status of SB 29?
This bill has been enacted into law. Introduced January 12, 2023. Enacted.
Where can I track SB 29?
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