Delaware State News | by Joseph Edelen
Members of Retirees Investing in Social Equity Delaware urged lawmakers to devote 2% of the annual budget to pensioners’ health care and continued pleas for their existing coverage to remain intact during a rally Tuesday on The Green.
The group’s co-founder, former state Rep. John Kowalko, told the more than 150 individuals in attendance not to rely on ongoing litigation for their benefits to be honored, instead insisting that retirees reach out to their elected officials to take legislative action.
“The battle is not going to be won solely by the courts. It’s going to be by laws changing towards taking action. So, as much as we need to fight in the courts to preserve, at least temporarily, our rights, that is not where the war is going to be won,” Mr. Kowalko said.
Last October, Delaware Superior Court issued a stay on implementation of the state’s Medicare Advantage plan, following a lawsuit filed by retirees and RISE Delaware.
That case has since been transferred to the Court of Chancery for further deliberation.
In addition to reaching out to lawmakers, advocates called for a focus on addressing Delaware’s $8.9 billion unfunded liability for providing health care to retirees.
For fiscal year 2024, Gov. John Carney recommended a one-time $325 million supplement that included a 1% budget carve-out toward the liability, or approximately $51 million.
However, Mr. Kowalko said that appropriation is not enough, suggesting a 2% carve-out every year or for funding to be directed from the Budget Stabilization Fund.
“All I know is that money should be spent on the people that have earned their rights and promises to have health care,” he said.
Tuesday’s rally featured speeches from Lt. Gov. Bethany Hall-Long; New Castle County Executive Matt Meyer; Rep. Cyndie Romer, D-Newark; and several members of the retiree organization.
Former state Rep. Ray Seigfried also spoke and advocated for an increased allotment and for lawmakers to codify annual budget funding for the liability.
“They have to do the modeling of a payment that they’ve not paid for a while. … They have to codify that in the budget, so each year, they’re paying their fair share,” he said. “Secondly, they have to realize that Medicare Advantage is nothing more than privatizing a promise that they made many, many years ago. Regular Medicare is what they need to stick with.”
Department of Human Resources Secretary Claire DeMatteis, who oversaw the process of adopting Medicare Advantage, has said the plan approved by the State Employee Benefits Committee was specific to Delawareans and not a privatization of retirees’ health care benefits.
As RISE Delaware continues its protests in and out of the courtroom, Senate Bill 29 was passed earlier this year to establish the Retiree Healthcare Benefits Advisory Subcommittee, which has met regularly to discuss the state’s next steps.