FOR IMMEDIATE RELEASE | May 19, 2026
Contact: Sarah Fulton (302) 401-1114
DOVER — Following months of negotiations, legislation to reform and reinvigorate primary care in Delaware unanimously passed the Senate on Tuesday. Like the original bill, Senate Substitute 2 for Senate Bill 1 would shift the state’s health care industry toward a focus on wellness and an adoption of value-based care models.
“Everyone agrees that Delaware’s system of primary care is in a tremendously precarious position, with a majority of Delawareans lacking access to a primary care provider. At the same time, patients seeking care are paying some of the highest health care prices in the country,” said prime sponsor Senate Majority Leader Bryan Townsend. “The legislation we’ve passed today addresses both health care cost and quality for patients by making primary care more accessible to patients and standardizing a framework of value-based care. I thank my colleagues Sen. Ray Seigfried, Rep. Nnamdi Chukwuocha, and Insurance Commissioner Trinidad Navarro for their continued collaboration to get this right for the People of Delaware.”
This legislation continues on previous work of the General Assembly, enhancing and making permanent the framework laid out in legislation the General Assembly passed in 2021. Upon implementation, this framework doubled annual primary care investment in the commercial market. The substitute lawmakers passed Tuesday expands on this work, requiring that state employee and Medicaid plans be included in the new framework.
“I want to thank Majority Leader Townsend for his steadfast commitment to making primary care investment permanent and bringing value-based care to our Medicaid and State plans. While this is a significant step forward, I believe there is an opportunity to go even further in addressing Delaware’s high healthcare costs,” said Insurance Commissioner Trinidad Navarro. “My experience shows that broad cost containment is essential for long-term affordability. We must be careful not to slow the progress we’ve made toward a more equitable system. Moving forward, the Department of Insurance remains fully dedicated to working alongside all stakeholders and utilizing our regulatory expertise to ensure healthcare remains accessible and affordable for every Delawarean.”
Specifically, SB 1 empowers the Delaware Department of Insurance to promulgate value-based models that will continue to move the State’s health care system away from fee-for-service reimbursement may encourage frequent patient visits and billing codes instead of patient outcomes. Instead, value-based care models will be used across commercial, state, and Medicaid plans to maximize providers’ access to quality incentive payments.
Finally, SB 1 includes critical cost hospital containment mechanisms, including a phased-in system for capping hospital prices at 250% of Medicare rates for those services by 2033, to address the status quo of Delaware hospitals charging among the highest prices in the country.
“The Delaware Healthcare Association is proud to support SS 2 for SBl 1,” said Brian Frazee, President & CEO of the Delaware Healthcare Association. “We appreciate Senator Bryan Townsend’s collaborative leadership and partnership on our shared priorities of supporting primary care and improving healthcare affordability. This amended legislation moves the needle on healthcare costs while also recognizing the headwinds facing hospitals and Delaware’s unique care needs as a growing and aging state.”
Senate Bill 1 has been assigned to the House Health & Social Services Committee.
“Primary care is the first line of defense in keeping our communities healthy,” said Rep. Nnamdi Chukwuocha, House prime sponsor of SB 1 (S). “A strong healthcare system begins with ensuring that people have access to preventative care and the support they need before issues escalate. By investing in patient-centered care and more effective healthcare models, we can create healthier communities and create a healthcare system that is more affordable and equitable for everyone.”
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