Health Care Commission awards contract in effort to spur payment reform

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The  Delaware Health Care Commission has awarded a contract to accelerate payment reform to Mercer Health & Benefits LLC.

The $889,947 contract, which takes effect immediately, will support the state’s efforts in four main areas: health care payment reform implementation models, legal analysis, economic modeling and analysis, and open data transparency. 

House Joint Resolution 7 in September authorized the Department of Health and Social Services  to develop a health care spending benchmark that is linked to the state’s rate of economic growth. Mercer’s contract will  the work being done with stakeholders to develop the benchmark and come under the $35 million federal grant Delaware received from the Center for Medicare and Medicaid Innovation   to change the way health care is delivered and paid for in the state. 

“Mercer brings a strong level of expertise to help us accelerate health care payment reform in our state,” said DHSS Secretary Dr. Kara Odom Walker. “With Mercer and its subcontractors on the ground, we will be able to explore what is needed to change the way health care is paid for in Delaware that, ultimately, will lead to better health for the people of our state, an improved health care experience and at a lower cost. We look forward to working with Mercer and stakeholders in Delaware to accomplish our goal of payment reform.”

In a federal analysis released this summer, Delaware had the third-highest per capita spending for health care in the country, behind only Alaska and Massachusetts.

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In 2014, Delaware’s per-capita rate of $10,254 was 27 percent higher than the U.S. average.

Despite the spending,  Delaware ranks   31st among the states, according to America’s Health Rankings.

Delaware’s health care system plans  to a more a outcome-driven  approach and  away from a system that pays for care based solely on the number of room days, visits, procedures and tests.

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