Posted By John Baker,
Friday, June 27, 2014
are some "end-of-session” updates for you.
Grant-In-Aid - As we move into
the wrap-up of the 147th Delaware General Assembly session, Monday,
June 30 – July 1, we saw the Grant-In-Aid (GIA) bill come out of
the Joint Finance Committee with level funding as compared to last year's.
Some applicants went up nominally, some went down, and still others were
eliminated. Considering the State’s budget struggles and the cuts they
made elsewhere, level funding was pretty good for GIA. The bill will be
available at the following link next week if you want to check before you
receive your notification from the Controller’s office: http://legis.delaware.gov/
In the left
column at the bottom, enter "GA147" for the session, then in the last box enter "Grant-In-Aid" and click "Go” to search.
have also been updating you on the "Grant-In-Aid Reform Initiative” that the
JFC Co-Chairs initiated in earnest this past Fall. We have been at the
table on this reform, along with the United Way, Delaware Community Foundation,
and various other key Delaware foundations. The process has been talked about
for a very long time, but it has taken hold this year under the current
leadership. The reform will occur over several years, but here are
the first steps that were announced yesterday for the upcoming November
The application forms will look a bit different. You will be able to fill in
the forms as "Fillable PDFs” and they plan to move to an online application
process in the next couple of years once they have the computer / IT
You will be required to list all funding sources for your organizations
including Pass-Throughs, Block Grants, and all other sources;
Listing of all disbursements, including Salary and Benefits, as a percent of
List of grants and Pass-Throughs from 2014 and projections for 2016;
Board of Directors contact information;
More detailed programmatic section with detailed description of populations
Description of what led to your deficit or surplus, and what your plans are for
managing the financial position you're in;
ED/CEO and Board Chair signatures required on the application;
Audited Financial Statements within the past three years will be required.
You will have time to put this expense in your budget, meanwhile, you
will be able to provide a statement as to why you can’t provide audited
of these changes, it will be important for you to attend the regularly scheduled
"Grant-In-Aid Orientation” sessions in October. Check the site. The
dates will be listed in the application packages that you typically receive.
Joint Finance Committee will meet again in September to continue their
"Grant-In-Aid Reform” discussions. They will determine what aspect of
funding they will address next, but they believe that it may be the $8 Million
Compensation Insurance Reform & HB 373 - The General Assembly also passed, and the Governor signed, HB 373 for Workers Compensation Insurance Reform.
This bill continues the work of the Governor’s Task Force. This bill is
on the heels of last year's actions that the Task Force thought would solve the
steady annual requests for 40% increases, that have settled at near 20%
increases the previous two years. The task force identified significant
medical cost reimbursements as the main driver to Workers Comp. rate increase
requests. This bill caps reimbursement of treatment expenses based on
Medicare reimbursement rates beginning in 2017.
in the meantime, if we can connect you with services like the Red Cross that
can help you make your workplaces safer, let us know. Your Workers
Compensation Insurance rates are based on your "Experience” so if you
have one injury in a small organization it can significantly impact your
rates. Talk to your insurance provider, too, and ensure that they’re
helping you get every advantage possible.
always, please feel free to reach out to me with any comments or questions
at email@example.com or
Joint Finance Committee
Posted By John Baker,
Friday, June 6, 2014
Over the past four years, workers’
compensation insurance premiums have grown by 40 percent. The majority of this premium increase
results from medical costs. Nonprofits, that are businesses, small businesses
and the overall economy are harmed by these increases. Because of these
increases, Delaware’s workers’ compensation medical costs are among the highest in the
country. The Workers’
Compensation Task Force, chaired by Lieutenant Governor Matt Denn and consisting
of representatives of all interested parties, was charged with finding a
solution to the soaring premiums.
The Task Force’s suggestion was to tie
workers compensation medical procedure payment rates to Medicare. This would
result in somewhat lower reimbursement rates made to health care
providers for treating workers’ compensation patients. Over the next few years,
these actions will target lowering
workers’ compensation costs by
33 percent. The reimbursement rate will be set at 200 percent over Medicare—with the exception that
surgeons and radiologists will be paid at a slightly higher rate as a result of
higher costs and more complex treatments in their particular fields.
The proposal has near unanimous support
across party lines, including key support by Governor Jack Markell. This past
Wednesday this House Bill 373 was voted out of the House Economic
Development/Banking/Insurance/Commerce Committee and is on its way to the House
Agenda. The recommendation will likely be approved by the General Assembly
before the end of session on June 30th.
Know that we are watching this important matter for you.
As always, please feel free to reach out
to me with any comments or questions at firstname.lastname@example.org or
Posted By John Baker,
Friday, February 28, 2014
I case you haven’t heard, I wanted to let you know that the Delaware Insurance Commissioner Karen Weldin Stewart has announced an increase in Workers’ Compensation rates of 11.4% in residual market rates and 14% in voluntary markets. The effective date of the increase is retroactive to December 1, 2013 for new and renewal business.
While this is certainly less than the 40% increase requested by the Workers’ Compensation Rating Bureau, DANA still believes that more must be done to reform the system. This is the second rate hike in as many years. We, as nonprofits, cannot pass these added costs to our “customers” as other businesses can. Instead, it comes out of the services that we are providing. Less services in a time of such great need is not what Delaware needs.
We will continue to work with the Delaware Insurance Commissioner, the Lt. Governor, and the Governor to initiate real system-wide reform to ensure proper operation of the system as required by the statute with a goal of keeping future increases as small as possible, as well as safety improvement programs implemented by nonprofits to keep costs down.
If you’d like to read the full article from the State of Delaware, click here.
If you’d like more information about the Delaware Department of Insurance, click here.
As always, please feel free to reach out to me with any comments or questions at email@example.com or 302.777.5500.
Posted By John Baker,
Tuesday, February 18, 2014
Hi all –
Since 2012, and as one of our continued Public
Policy Agenda items again in 2014, DANA has been working to limit growth in Workers Compensation Insurance (WCI) rates. We attended the weekly meetings of the Governor’s Task Force
on Workers Comp. Insurance, which was chaired by Lt. Governor Denn, as a representative of the nonprofit sector in Delaware.
In addition to the Governor's Task Force, we've discussed the
matter with legislators as well as colleagues at the Chambers of Commerce. Chris has also given testimony at the public hearings in 2013 and 2014.
With all that in mind, I wanted to pass along an article from the Monday, February 17 issue of The News Journal that expresses Lt.
Governor Denn’s outrage over the proposed 2014 WCI rate increases. In it, Denn is calling for the General Assembly to step in to help fix the system.
Click here to read: "Denn takes swing at workers' compensation insurance bureau"
Please always know that we at DANA are closely
watching this issue on your behalf.
As always, if you’d like to talk
about this with me please give me a call at 302.777.5500 or email me at firstname.lastname@example.org
Posted By John Baker,
Thursday, October 24, 2013
DANA was present last evening representing the nonprofit
sector at the Wilmington Public Meeting on Workers Compensation Insurance,
hosted by the Delaware Department of Insurance. The program began with
the Department’s Gene Reed giving opening remarks and introducing the Delaware
Compensation Rating Bureau’s (DCRB) Tim Wisecarver who described the DCRB’s
Filing No. 1305 requesting an average 40% increase in the Workers Compensation
rates for 2014. This was followed by comments from the "Rate Payers
Advocate” and their actuary (position created by the Governor’s Task Force and
legislation this past June). This Advocate and their Actuary recommends
an average 20% increase. This was followed by a presentation by the
Delaware Department of Insurance’s Actuary who recommended an average increase
of 20% as well.
The program concluded with the Delaware Department of
Insurance’s Gene Reed announcing that a Public Administrative Hearing will be
announced on the Department’s website and will be presided over by the Hon.
Judge Martin. The Judge will make a recommendation to the Insurance
Commissioner, Karen Weldin Stewart, who will render a final decision on any
There will be an opportunity for the public to make
statements at the Public Administrative Hearing and DANA will be there.
Meanwhile, the Governor’s Task Force on Workers Compensation
Insurance continues to meet to develop a course forward that is fiscally
responsible and continues to support Delaware’s economic recovery.
always, if you have any questions please feel free to reach out to me.
Posted By John Baker,
Wednesday, September 25, 2013
are working diligently to make sure our members are
provided with the most up to date news regarding the information and
requirements of ACA (Healthcare Reform-Patient Portability and Affordable Care
Act Law). Therefore, we are reminding you
that each employer is required by ACA to notify their employees of the upcoming
exchange plans, regardless of whether you offer or provide healthcare to them.
The deadline for this notification is October 1, 2013. Please see the
information and links below. We hope this information will be helpful to you.
always, if you have any questions please reach out to me.
HEALTH INSURANCE MARKET EXCHANGE NOTIFICATION Most employers in Delaware are required to send a written healthcare exchange
notification to their employees by October 1, 2013. The only exceptions to this
are those businesses that have annual gross revenue under $500,000. This
notification also applies to hospitals, schools, and government agencies.
In addition, starting October 1, 2013, the notices have to be given to New
Employees on the date they are hired. Click on this link to access the Exchange Notification Document that
can be used. Information about your company and your current medical insurance
coverage needs to be inserted in Part B before distributing to your employees.
These letters must go out to ALL employees, regardless of the hours they work,
whether or not they are seasonal employees, or whether or not they are eligible
for insurance. For new hires after the October deadline, through 2014,
the notice must be sent out within 14 days of their hire date.
The intent of the Exchange Notification Document is to let employees know about
the upcoming Open Enrollment beginning October 1, 2013 and to make them aware
of a potential Tax Credit based on their household income. The employee should
also know that if they opt for coverage through the Exchange or Marketplace,
they will forfeit the company contribution as well as their ability to pay
their premium share on a pre-tax basis.
An employer can provide 'an alternate notice' as long as it provides the
1) A description of what Exchanges are, what they provide, and where employees can
go to find more information about them; AND
2) Information regarding available tax credits if the employer doesn't provide
minimum essential coverage and the employee purchases health insurance on the
3) A statement that employees who purchase coverage on the Exchange may lose
employer's (tax-free) contribution to the cost of health insurance offered by
the employer. Also, that the employee's contributions to the employer-sponsored
plan are often pre-tax contributions and the employee's contributions for
insurance purchased on the exchange are post-tax contributions.
Failing to meet the October 1, 2013 deadline may result in fines as steep as
$100 per day, per employee. Employers must provide this in writing
by first class mail or electronically. We also encourage you to retain
copies of the letters for proof should your compliance ever be brought into
NEWS FROM ALLEN INSURANCE (BENEFITS
As you may know, effective January 1, 2014 all
individuals are required to have health insurance. Effective
October 1, 2013 individuals will be able to purchase health insurance from
the public Health Insurance Marketplace better known as the
To that end, ACA has mandated that all employers notify
their employees of the ‘Exchange’ availability. This notice must be
provided to all your employees (full and part time) and it does not matter if
you offer or provide them health insurance or not – every employee must get the
sample notice is provided on the government website (Department of Labor) and
there are two models – one for employers who offer coverage (click here
if you offer coverage) and one for employers who do not offer coverage (click
here if you do not offer coverage). This same notice is required to
be presented within 14 days to newly hired employees.
Affordable Care Act
Posted By John Baker,
Monday, June 24, 2013
House Bill 175, sponsored by Rep. Byron Short and Senator
Patricia Blevins, both on the Governor’s Task Force on Workers Compensation
Insurance, was passed through both houses of the Delaware General Assembly
without a single dissent and is ready for the Governor to sign.
HB 175 was crafted from the work of the Task force that the
Governor established in January, chaired by former Insurance Commissioner,
Lt. Governor Matt Denn. The task force concluded its work in May and presented
their proposed recommendations to the Governor and General Assembly.
Lt. Governor Matt Denn provided solid leadership for this
task force and the members were diligent in their work, with committee meetings
beginning February 8th and taking place every Friday until May 10th. DANA represented the nonprofit sector at each meeting.
The Task Force and resulting bill were in response to
workers’ compensation insurance increases of 31 percent over the past two
years. This after four years of
decreases when Senate Bill 1 was passed in 2007 to fix the system.
HB 175 will make the following changes to the Delaware’s
workers’ compensation system:
- A two-year freeze on all inflation increases for
medical providers, with limits on increases after the two-year freeze
- Increase number of medical procedures in the
current fee schedule
- Inclusion of all radiology and
pathology/laboratory reimbursements in the current fee schedule
- Inclusion of ambulatory center reimbursements in
the fee schedule
- New pharmaceuticals price controls
- Cap drug testing costs and frequency
- Reduce the number of physical therapy
sessions allowed, and a review of the treatment protocols
- Cap anesthesia reimbursements
independent "Advocate Attorney” will be hired by the Department of
Insurance, in place of the typical second Actuary, to advocate on behalf of
ratepayers in the rate setting process
- The Delaware Compensation Rating Bureau (DCRB)
will be required to provide data to the Workers Compensation Data Collection
Committee regularly for analysis
- Streamline the process for employers to inform
treating doctors of available light duty for inured workers
- The workplace safety credit will be available to
employers that demonstrate that their insurance providers safety exam is at
least as rigorous as that of the Department of Labor
The committee will continue to work on controlling costs
and reforming the process to make it one of the best in the country. DANA will
continue to work with the group and with the nonprofit sector to introduce
programs for improved workplace safety, and to introduce new Workers
Compensation Insurance options.
You can view the report by clicking HERE, and
the bill by clicking HERE.
Posted By John Baker,
Monday, May 13, 2013
The Governor’s Task Force on Workers Compensation Insurance
concluded it’s work last Friday and presented their proposals at the
Delaware State Chamber offices this Monday morning, May 13, at 10:00 am. The
recommendations were presented to the Governor and General Assembly, as well.
Lt. Governor Matt Denn provided solid leadership for this task
force and the members were diligent in their work, with committee meetings beginning February 8th, and taking place every Friday. Their work concluded this past Friday with the report
recommending and finding:
- That the committee should meet quarterly; an increase
in frequency from annually
- That data was not
being provided to the Healthcare Advisory Panel and Date Collection Committee
in a timely manner as required by the 2007 legislation, and it will now be provided to the panel as
required and more frequently
- That Healthcare Costs
were driving the increases in Workers Compensation Insurance, and not just
claims, and recommendations were made to
control cost and the committee will continue to watch these costs closely
- That an "Advocate
Attorney” should be hired by the Department of Insurance, in place of the typical second
Actuary, to advocate on behalf of Employers when rate changes are proposed
The Task Force will continue to work on controlling costs and reforming the process to make it one of the best in the
country. DANA will continue to work with the task force and with the nonprofit sector to introduce programs for improved workplace safety, and to
introduce new Workers Compensation Insurance options. You can view the report by clicking HERE.
See you at Nonprofit Day on Wednesday, May 15th
in Dover. Click here for details.
Delaware Nonprofit Day