Maryland House Bill HB604

Maryland 2023 Regular Session

• Introduced: 2/3/23
• Refer: 2/3/23

Caption

Health Insurance - Health Benefit Plans Issued Through Professional Employer Organizations - Exemption

Impact

If enacted, HB604 will specifically amend existing laws pertaining to the provision of health benefit plans, allowing PEOs more flexibility in offering insurance without the burden of additional state requirements. The bill applies to health benefit plans issued, delivered, or renewed on or after January 1, 2024. By exempting plans from the formalities typically mandated for small employers, it could lead to increased participation among small businesses in offering health insurance options, thereby improving their competitiveness and attractiveness as employers.

Summary

House Bill 604 is a proposed legislation aimed at modifying the requirements related to health benefit plans offered within the state of Maryland. The bill's main focus is on health benefit plans issued through professional employer organizations (PEOs), which engage in employee leasing. HB604 seeks to exempt these specific health benefit plans from certain requirements that typically apply to plans available to individuals and small employers. This change is intended to simplify the regulatory landscape for PEOs in the state and improve the accessibility of health benefit plans for small businesses and their employees.

Contention

However, the bill has raised points of contention among stakeholders, particularly concerning the implications of such exemptions. Critics may argue that easing regulatory requirements could potentially lead to inadequate coverage quality, leaving workers vulnerable if PEOs are not held to the same standards as other insurance carriers. There are concerns about consumer protections and ensuring that the plans offered through PEOs are comprehensive and accessible. The broader dialogue surrounding HB604 may address balance between regulatory relief for businesses and the need to maintain critical standards for health benefit coverage.