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Delaware Department of

Office of Value Based Health Care Delivery (OVBHCD)

In recent years, Delaware has acted to improve healthcare quality and bend the healthcare cost growth curve by:

To further help bend the healthcare cost growth curve, in 2019, Senate Bill 116 of the 150th Delaware General Assembly directed the DOI to create the Office of Value Based Health Care Delivery to “reduce health-care costs by increasing the availability of high quality, cost-efficient health insurance products with stable, predictable, and affordable rates.” SB 116 charged the Office with three tasks:

  1. Establish Affordability Standards for health insurance premiums based on recommendations from the Primary Care Reform Collaborative and annually monitor and evaluate these standards;
  2. Establish targets for carrier investment in primary care to support a robust system of primary care by January 1, 2025; and
  3. Collect data and develop annual reports regarding carrier investments in health care, including commercial reimbursement rates for primary and chronic care services.

By October 2021, Delaware’s Legislature passed Senate Substitute 1 for Senate Bill 120 and Governor Carney signed it into law. This legislation recognizes the benefits of effective primary care and aims to make it more accessible to all Delawareans. It is based on findings and Affordability Standards outlined in the Office’s inaugural report below. In 2021 the Office updated its report and published an Annual Review of Carrier Progress Towards Meeting Affordability Standards to provide a baseline with which to measure future progress. The report reinforces the need for the new law, and highlights opportunities for meaningful progress that will improve the physical, mental, and financial health of Delawareans.
The OVBHCD is proposing to implement SS1 For SB120 through proposed new Regulation 1322 Requirements for Mandatory Minimum Payment Innovations in Health Insurance . The proposal was published in the January 1, 2022 edition of the Register of Regulations (see also the Department’s Proposed/Adopted Regulations & General Notices webpage for access to the proposal). Written comments may be submitted to DOI_Legal@delaware.gov by no later than the January 31, 2022 comment period deadline.
Additional reports prepared by the Office on primary care investment and health care affordability in Delaware can be found below:

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