Maryland 2022 Regular Session

Maryland Senate Bill SB395 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2
3	3	EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
4	4	[Brackets] indicate matter deleted from existing law.
5	5	sb0395
6	6
7	7	SENATE BILL 395
8	8	J5 2lr0143
9	9	CF HB 413
10	10	By: The President (By Request – Administration) and Senators Bailey, Carozza,
11	11	Cassilly, Eckardt, Edwards, Hershey, Jennings, Salling, and West
12	12	Introduced and read first time: January 24, 2022
13	13	Assigned to: Finance
14	14
15	15	A BILL ENTITLED
16	16
17	17	AN ACT concerning 1
18	18
19	19	Health Insurance – Individual Market Stabilization – Extension of Provider Fee 2
20	20
21	21	FOR the purpose of continuing the stabilization of the individual health insurance market 3
22	22	by extending to a certain calendar year the assessment of a health insurance 4
23	23	provider fee; and generally relating to the individual health insurance market. 5
24	24
25	25	BY repealing and reenacting, with amendments, 6
26	26	Article – Insurance 7
27	27	Section 6–102.1 8
28	28	Annotated Code of Maryland 9
29	29	(2017 Replacement Volume and 2021 Supplement) 10
30	30
31	31	SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 11
32	32	That the Laws of Maryland read as follows: 12
33	33
34	34	Article – Insurance 13
35	35
36	36	6–102.1. 14
37	37
38	38	(a) This section applies to: 15
39	39
40	40	(1) an insurer, a nonprofit health service plan, a health maintenance 16
41	41	organization, a dental plan organization, a fraternal benefit organization, and any other 17
42	42	person subject to regulation by the State that provides a product that: 18
43	43
44	44	(i) was subject to § 9010 of the Affordable Care Act, as in effect on 19
45	45	December 1, 2019; and 20
46	46
47	47	(ii) may be subject to an assessment by the State; and 21
48	48	2 SENATE BILL 395
49	49
50	50
51	51	(2) a managed care organization authorized under Title 15, Subtitle 1 of 1
52	52	the Health – General Article. 2
53	53
54	54	(b) The purpose of this section is to assist in the stabilization of the individual 3
55	55	health insurance market by assessing a health insurance provider fee that is attributable 4
56	56	to State health risk for calendar years 2019 through [2023] 2028, both inclusive, as 5
57	57	provided for under subsection (c) of this section. 6
58	58
59	59	(c) (1) In calendar year 2019, in addition to the amounts otherwise due under 7
60	60	this subtitle, an entity subject to this section shall be subject to an assessment of 2.75% on 8
61	61	all amounts used to calculate the entity’s premium tax liability under § 6–102 of this 9
62	62	subtitle or the amount of the entity’s premium tax exemption value for calendar year 2018. 10
63	63
64	64	(2) In calendar years 2020 through [2023] 2028, both inclusive, in 11
65	65	addition to the amounts otherwise due under this subtitle, an entity subject to this section 12
66	66	shall be subject to an assessment of 1% on all amounts used to calculate the entity’s 13
67	67	premium tax liability under § 6–102 of this subtitle or the amount of the entity’s premium 14
68	68	tax exemption value for the immediately preceding calendar year. 15
69	69
70	70	(3) The assessments required in paragraphs (1) and (2) of this subsection 16
71	71	are for products that: 17
72	72
73	73	(i) were subject to § 9010 of the Affordable Care Act, as in effect on 18
74	74	December 1, 2019; and 19
75	75
76	76	(ii) may be subject to an assessment by the State. 20
77	77
78	78	(4) The calculation of the assessments required under paragraphs (1) and 21
79	79	(2) of this subsection shall be made without regard to: 22
80	80
81	81	(i) the threshold limits established in § 9010(b)(2)(A) of the 23
82	82	Affordable Care Act; or 24
83	83
84	84	(ii) the partial exclusion of net premiums provided for in § 25
85	85	9010(b)(2)(B) of the Affordable Care Act. 26
86	86
87	87	(d) (1) (i) In each of fiscal years 2021 and 2022, $100,000,000 of the funds 27
88	88	collected from the assessment required under this section shall be transferred in accordance 28
89	89	with subparagraphs (ii) and (iii) of this paragraph to Medical Care Provider 29
90	90	Reimbursements (M00Q01.03) within the Medical Care Programs Administration of the 30
91	91	Maryland Department of Health. 31
92	92
93	93	(ii) If all or a portion of the funds required to be transferred under 32
94	94	subparagraph (i) of this paragraph have been received and are held in the Maryland Health 33
95	95	Benefit Exchange Fund established under § 31–107 of this article, the Governor shall 34
96	96	transfer the available amount in the Fund. 35
97	97	SENATE BILL 395 3
98	98
99	99
100	100	(iii) If the amount of funds transferred under subparagraph (ii) of this 1
101	101	paragraph is less than the amount required to be transferred under subparagraph (i) of 2
102	102	this paragraph, the Insurance Commissioner shall transfer the remaining amount from the 3
103	103	funds collected from the assessment required under this section. 4
104	104
105	105	(2) At the beginning of each of fiscal years 2023 and 2024, the Governor 5
106	106	shall transfer the first $8,000,000 of the funds collected from the assessment required 6
107	107	under this section to the Community Health Resources Commission. 7
108	108
109	109	(3) Notwithstanding § 2–114 of this article, the remainder of the 8
110	110	assessment required under this section after any transfers made under paragraphs (1) and 9
111	111	(2) of this subsection shall be distributed by the Commissioner to the Maryland Health 10
112	112	Benefit Exchange Fund established under § 31–107 of this article. 11
113	113
114	114	SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 12
115	115	October 1, 2022. 13
116	116