Workers compensation insurance costs for employers in Delaware have surged in recent years. Now, state legislators are taking action, unanimously passing a bipartisan comp reform bill that sharply curtails payments to health care providers who treat injured workers. The News Journal has the report (see "Senate OKs workers' comp reforms," by Jonathan Starkey). "Delaware's cost to treat workplace injuries remained among the highest in the country despite two previous legislative efforts to reduce insurance costs," the paper reports.
InsuranceNewsNet.com carries a press release from the office of Delaware Governor Jack Markell on the details of the reform plan (see "Workers Compensation Recommendations Pass General Assembly"). The governor's statement says, "The recommendations for House Bill 373 focused almost exclusively on medical costs, as they make up 65% to 70% of every dollar spent on workers' compensation premiums in Delaware, and make up 100% of the increase in premiums. The most substantial provision in this bill is a significant reduction in the reimbursements paid to health care providers for treatment of workers' compensation patients. The task force has revealed that reimbursements for treatment of workers' compensation patients in Delaware has evolved to be among the highest in the country--in some cases three, four, or even five times the reimbursement for exactly the same procedure than what is allowed in other states."