State Retirees Sue To Stop Medicare Advantage Plan – Town Square Delaware

Charles Megginson September 28, 2022 Government, Headlines
Rep. John Kowalko speaks at a Sept. 12 town hall in opposition the state’s plan to shift pensioners to a Medicare Advantage plan. Charlie Megginson/Delaware LIVE
A group of Delaware state government retirees and pensioners has filed suit against two government officials tasked with implementing a change in their health insurance coverage.
RISE Delaware, an organization formed after state officials announced a plan to transition retirees to a Medicare Advantage program, filed the lawsuit in the Delaware Superior Court.
RISE hopes to stop the transition to the Advantage program, which is set to take place on Jan. 1, 2023.
“I have worked and contributed to Medicare my entire adult life,” said retired state Sen. Karen Peterson, one of the plaintiffs in the lawsuit. “For the state to take my Medicare benefits and give them to Highmark who, in turn, will decide what medical treatments I can get, is totally unacceptable.” 
“My doctors should make decisions about my medical care, not an insurance company that increases its profits by denying and delaying treatment,” Peterson said.
RELATED: Change to state retirees’ health insurance prompts angst
Secretary Claire DeMatteis, who leads the state’s Department of Human Resources, and Director Cerron Cade, who heads the Office of Management and Budget, are named as defendants in the suit.
Cade is also co-chair of the State Employee Benefits Committee, the government body that manages employee and retiree benefit coverage.
DeMatteis and Cade declined to comment Wednesday.
The complaint alleges that the State Employee Benefits Committee “quietly adopted a regulation” that will fundamentally change the health care benefits relied upon by Delaware’s retirees, “without following the procedures required for an open government, and without input from those most affected.”
In doing so, the plaintiffs allege, the committee violated the Administrative Procedures Act, which details procedural requirements for government agencies in adopting, amending or appealing regulations.
The plaintiffs say the State Employee Benefits Committee:
“Accordingly, the [State Employee Benefits Committee]’s decision to force Medicare-eligible State retirees into the Medicare Advantage plan is unlawful and cannot be implemented,” the complaint says. 
Had the committee complied with the Administrative Procedures Act, “plaintiffs and countless other state retirees would have had an opportunity to object to the reduction of their healthcare benefits and explain why this directive was unwise and dangerous,” the suit says.
RISE also argues that the state’s communications to retirees about the Medicare Advantage plan “have been, at best, confusing and misleading. At worst, the realities of Medicare Advantage have been hidden in the representations made to retirees…”
In an interview with Delaware LIVE News Wednesday, Peterson called the lawsuit “pretty straightforward. The state failed to follow the requirements for open discussion in the adoption of regulations,” she said.
During a Sept. 12 town hall on the issue, DeMatteis said it’s too late to stop the implementation of the new plan. 
Peterson disagrees.
“The contract has not been signed, so it’s not too late,” she said. 
Outgoing Rep. John Kowalko, D-Newark, who has led the charge against the shift to Medicare Advantage, called the plan “an atrocity to retirees” and accused Gov. John Carney “and his minions [of] a callousness that is almost inhuman.” 
“State retirees are not prominent in the hearts and minds of everybody in this administration, as they should be,” Kowalko said. “It’s because now that retirees are done working, the governor says, ‘Move on. Enjoy your future as best you can.’”
RELATED: State retirees skeptical of new Medicare Advantage plan
In an earlier interview, DeMatteis said the change is being made to alleviate the state’s $10 billion unfunded liability for retiree healthcare. Left unchanged, that liability would likely grow to $31 billion by 2050, she said.
Kowalko’s response is twofold: Retirees will suffer because the state failed to reduce that liability in the past, and the state plans to continue frivolously spending taxpayers’ money on pet projects like expanding Legislative Hall.
“This governor and his predecessors did not fund or even attempt to fund this obligation,” he said. “So they were looking for the path of least resistance to ease that burden and they saw retirees as that path.” 
Kowalko believes the plan represents a “privatization of Medicare designed to generate profits for Highmark and others,” he said.
During the town hall, DeMatteis said Highmark Blue Cross Blue Shield “is prepared to and will lose money on this plan,” an announcement that prompted laughter from the audience.
DeMatteis and others noted that the change will align state retirees with health insurance requirements that active employees and public-sector retirees have had for decades.
Kowalko said the government shouldn’t look to for-profit corporations as an example when deciding how to treat its retirees.
“Of course the private sector wants these kinds of plans,” Kowalko said. “They save them and their shareholders money.”
“The difference is that the state made a promise to its retirees. We owe them,” he said. “We are obligated to keep our guarantee in place that their benefits will be there in the future and will not be cut open and dried out and used to generate profit for Highmark.”
RISE launched a GoFundMe to help fund its legal challenge. In two days, the fundraiser collected $13,771. Organizers have a total goal of $150,000.
Peterson said she and others pitched in $7,500 to file the suit, which seeks an expedited resolution.
“Oct. 3 to Oct. 24 is open enrollment,” Peterson said. “We would keep our fingers crossed that, with our request for an expedited procedure, this would be resolved in time for people to still be able to make a decision.”
Ultimately, RISE hopes for a declaratory judgment that DeMatteis and Cade violated the law and failed to execute their duties, and an order halting the implementation of the Medicare Advantage plan.
RISE will hold a rally on Tuesday, Oct. 4 in Wilmington.
The rally, which will be held on the plaza between the Carvel State Office Building and New Castle County Council Building, will begin at 12 p.m. 
“It is imperative that we get a big crowd to voice our objections in a loud tone that will be heard in Dover,” an emailed announcement says. “Please be there with your friends, families and neighbors. It is essential to your future.”
Kowalko said he hopes to organize more rallies, preferably in Kent and Sussex Counties.

Editor’s note: This story was updated to indicate that DeMatteis and Cade declined to comment Wednesday.
Charlie Megginson covers government and politics for Town Square LIVE News. Reach him at (302) 344-8293 or [email protected] Follow him on Twitter @cmegginson4.
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New B&M Meats will build an 80,000-square-foot production facility to manufacture sandwich steak and chicken     A manufacturer of raw sandwich steaks and chicken steaks will invest more than $18 million to build a new 80,000-square-foot plant and add 190 new jobs. New B&M Meats Inc’s addition to Wilmington’s food production industry will use $1.1 million in state grants to support the project in the city’s Seventh Street Peninsula. The company plans to start construction on the new facility in 2022 and open it in late 2023 or early 2024. The announcement was one of three economic good-news pieces Monday. The other two were Analytical Biological Services Inc., which will spend $4.2 million to expand lab space and double its work force, and Investor Cash Management’s $15.37 million new headquarters. Delaware Prosperity Partnership, the state’s nonprofit public-private economic development organization – and Wilmington’s Office of Economic Development have been working with New B&M since 2020 to evaluate scenarios for combining operations in the region to expand. The meats company now employs 98 people in Wilmington. The company will use a state Performance Grant of $195,975 to add 70 jobs to support organic growth at its Commerce Street location. The new facility will be completed along East Seventh Street on three parcels of land totaling 10 acres with support from a Capital Expenditure Grant of $555,300. A second Performance Grant of $359,450 will help the company add another 120 jobs at the new site to support increased production capacity, diversified product offerings and operational expansion through entry into new markets. “We are very excited to welcome New B&M Meats to Wilmington,” said Wilmington Mayor Mike Purzycki in a press release. “Together with Light Action Production’s new multi-million-dollar sound stage and the new CP Furniture factory, B&M Meats will augment the Seventh Street Peninsula’s unique blend of business park and historic cultural amenities.” He thanked the Delaware Prosperity Partnership as well as Jeff Flynn and his team in Wilmington’s Office of Economic Development. “It is just one more example of how Wilmington is on the move, continuing to attract new businesses, jobs, and residents to all parts of our city,” Purzycki said. By 2026, New B&M Meats projects total employment of 288 people between the two Wilmington facilities. New positions will include production line workers; operators; maintenance and production supervisors; and shippers/handlers. The company is currently hiring for positions at the Commerce Street location, and interviews will begin in late 2023 or early 2024 for the Seventh Street facility. “As one of the largest Philly steak manufacturers in the country, we’re excited to grow our presence in the rapidly growing and vibrant Wilmington community,” said  president Steve Realbuto. “With a strong pool of talent, supportive local and state government, and proximity to critical transportation routes, Delaware is a great place for a manufacturing company to do business.”
Firefly campers already in the grounds are having to deal with the rain as they wait for the music to start. DOVER — Firefly Music Festival is off to a slow start after heavy thunderstorms forced organizers to delay the beginning of the festival.   Entrances to the festival have been temporarily closed and festival-goers are not being admitted at this time.   According to a radio transmission sent to all Firefly staff, organizers do not yet know when they will reopen the gates and resume shuttles.   In the same radio call, organizers said they did intend to reopen the gates at some point today.   Presently, music acts and events within the festival are on hold. Organizers say reopening depends on the weather.   Long lines are forming outside of shuttle stops where festival-goers wait to be transported from parking lots to the main entrance and campgrounds. Long lines have formed at shuttle stops as Firefly organizers watch the weather before reopening gates. Shuttles have stopped running from parking to Firefly’s gates as admission is postponed beyond 3 p.m.   Ticket holders are being told that buses will resume, but they are not being told when.   At 11 a.m. festival organizers tweeted: “Attention Campers. Weather is coming and you should prepare for heavy rain and possible lightning. Please secure your camp, lower any pop up tents and enter your vehicles to ride out the storm.”   They advised attendees to seek shelter at a permanent structure such as a local business, the Dover Mall, or Dover Downs Hotel and Casino.   That hasn’t killed all the fun.   Groups inside and out of the festival have huddled around personal speakers, cases of beer and decks of cards to make the best of the unfortunate situation.   Rain and thunderstorms are anticipated until 9 p.m. Weather for the rest of the week is forecasted to be sunny with an average temperature of 75°.   Delaware LIVE is on the scene. Stay tuned for updates. Firefly is sending regular updates about delays in admitting people to the musical festival grounds.
Tavern on Kings has taken over the space formerly occupied by The Governor’s Cafe. Photo by Charlie Megginson   You would be forgiven for confusing the stately Dover mansion which houses Tavern on Kings for the governor’s official residence.  But inside the walls of the grand estate at 144 Kings Highway, you won’t find Delaware’s First Family. That house is across the street. Instead, you’ll find a bustling restaurant with a charm and new menu that owners and managers say will provide an elevated dining experience, compared to the former occupant, the Governor’s Cafe. After months of being closed for renovations to the historic Leason House, built in 1857 on a manicured triangular property in the heart of downtown, Tavern on Kings celebrated its grand opening Sept. 7. The updated menu includes options ranging from tacos to burgers, salads to steaks, with a variety designed to let each diner find a favorite. Selections include a Cajun seafood boil ($32), composed of red potatoes, corn, shrimp, middle neck clams and andouille sausage in a smoked tomato broth, topped with blackened mahi. Or you might try the slow braised short ribs with house-made barbeque sauce ($23) — or the Governor’s Club sandwich ($12), an ode to the Tavern on King’s predecessor. It’s all about growth, explained Theo Page, co-general manager at Tavern on Kings.  “We don’t want to be stuck in the preset of being known as Governor’s Café, the sandwich shop,” Page said.   Dover’s Tavern on Kings new decor includes touches of sophisticated color and images. Photo by Charlie Megginson Dark blue accents contrast with the honey-toned grain of wood in Tavern on Kings in Dover. Photo by Charlie Megginson When Tavern on Kings gets its liquor license, it plans to offer novel cocktails. Photo by Charlie Megginson   The menu offerings are made possible by a newly installed full kitchen, helmed by noted local chef, Paul Gallo. Gallo previously offered his culinary talents at Nage in Rehoboth, now known as Fork & Flask, Abbott’s Grill in Milford, and Brick Works Brewing and Eats in Smyrna. Before the installation of the new kitchen, the restaurant was “essentially working with a very powerful, large toaster oven and microwaves,” Gallo said. Not anymore. With new grills, ovens and fryers, Tavern on Kings is able to create about 95% of its food from scratch. The changes to the kitchen, interior and bar give the restaurant “everything it needs to create a perfect dining experience,” Page said.  The formerly white walls have been revived with cozy hues of blue and red, carefully selected to inspire an ambiance of comfort and warmth.  Gone are the dusty portraits of governors-past. Archival photos of downtown Dover now adorn the walls; a reminder of the capital city’s storied history.    The new Tavern on Kings shifted the building decor from down-home charm to a sleeker sophistication. Photo by Charlie Megginson One thing that won’t change at Tavern on Kings: The great front porch dining and schmoozing area. Photo by Charlie Megginson One thing that won’t change at Tavern on Kings: The great front porch dining and schmoozing area. Photo by Charlie Megginson Some of the art, co-general manager Jena Malago said, comes from the owner’s former business endeavor, 33 West on Loockerman, which was open for more than 15 years before closing in the wake of the pandemic.  With the new restaurant, Malago promises “elevated dining – not fine dining.”  Tavern on Kings seeks to create an experience to match the gravity of the historic mansion with the casual accessibility for which the cafe was long known.  The staff is dedicated to supporting the community by offering local produce and serving a selection of Delaware-based brews, among others. Their reasoning is simple: the local community has had their back, too.  “We want to thank them for supporting us and really for making this possible,” Malago said.  While Tavern on Kings is open for business, more changes are planned. The restaurant is still waiting on approval of its liquor license, after which Page plans to craft a select menu of in-house infused cocktails.  The room which was previously home to the coffee and pastry café will soon feature a large dining table perfect for families, groups and meetings. The restaurant also plans to host events such as weddings and parties. And the tavern is committed to keeping one beloved aspect of The Governor’s Café: Its popular Sunday brunch.  Not just yet, though. Malaga said there’s still much to do before Tavern on Kings can focus on that.  
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    A Dunkin’ franchisee who says he can’t get enough change from is bank will buy coins. Photo by Jeff Weese of Pexels   Hot coffee, donuts, breakfast sandwiches and free money. What do these things have in common?  All of them are being offered at four Wilmington-area Dunkin’ locations.  Before you start the car and drive off to Dunkin’s Claymont, Wilmington, Garnet Valley, Pennsylvania, and Brookhaven, Pennsylvania, locations for your free money, be aware you’re going to have to fork over some change.  Franchisee Rick Patel has started a promotion to buy coins from customers. His stores will pay you $105 in cash for every $100 you bring in coins.  Patel says he was forced to get creative after his bank stopped giving him the boxes of coins he needed for his stores to operate normally. “When I go to the bank for change, they give me two rolls of quarters, five rolls of pennies, and that only lasts me about half a day at one of my stores,” Patel said. Patel got the idea for the coin-buyback after a bank teller encouraged him to offer his customers incentives for their coins. He began by offering free drinks, but quickly realized that no incentive was quite as powerful as cold, hard cash.  “In the beginning I was giving out free drinks, coffee, iced coffee, and donuts, and then I started the $5 promotion.” Patel said he struggled to find coins during the beginning of the COVID-19 pandemic, but after a while things returned to normal.  It wasn’t until recently that banks stopped offering him coins again.  “Throughout the last two months or so, banks have stopped giving out boxes of coins. They only have so many quarters for all the small businesses,” said Patel. “So it is tough right now for small businesses, but there’s so much change just laying around in people’s houses right now.” He posted the offer on social media on July 6. The promotion was highly successful the first week, but has slowed a bit in its second. Patel plans to continue the offer until he has enough coins to operate his businesses normally.  To exchange your coins for cash, you can bring them to the morning manager at any of these four locations:  3224 Philadelphia Pike, Claymont, Delaware 1702 Faulkland Road, Wilmington, Delaware 1406 Naamans Creek Road, Garnet Valley, Pennsylvania 4589 Edgemont Ave., Brookhaven, Pennsylvania  
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