Maryland 2024 Regular Session

Maryland House Bill HB670 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	hb0670
6	6
7	7	HOUSE BILL 670
8	8	P6, P4 4lr2127
9	9	HB 1230/20 – APP
10	10	By: Delegates Grammer, Arikan, Chisholm, Fisher, Kipke, Munoz, Nawrocki, and
11	11	Szeliga
12	12	Introduced and read first time: January 25, 2024
13	13	Assigned to: Appropriations
14	14
15	15	A BILL ENTITLED
16	16
17	17	AN ACT concerning 1
18	18
19	19	State Prescription Drug Benefits – Retirees 2
20	20
21	21	FOR the purpose of authorizing certain retirees who began State service before a certain 3
22	22	date to be eligible for prescription drug benefits in the State Employee and Retiree 4
23	23	Health and Welfare Benefits Program; specifying that prescription drug benefits 5
24	24	shall be discontinued for certain Medicare–eligible retirees who began State service 6
25	25	on or after a certain date and their Medicare–eligible spouses and dependent 7
26	26	children; repealing the Maryland State Retiree Prescription Drug Coverage 8
27	27	Program, the Maryland State Retiree Catastrophic Prescription Drug Assistance 9
28	28	Program, and the Maryland State Retiree Life–Sustaining Prescription Drug 10
29	29	Assistance Program; repealing a requirement that the Secretary of Budget and 11
30	30	Management provide a certain notice; repealing a requirement for the Department 12
31	31	of Budget and Management to submit certain reports and ensure Medicare–eligible 13
32	32	retirees have access to certain services; and generally relating to State prescription 14
33	33	drug benefits for retirees from State employment. 15
34	34
35	35	BY repealing and reenacting, with amendments, 16
36	36	Article – State Personnel and Pensions 17
37	37	Section 2–509.1 18
38	38	Annotated Code of Maryland 19
39	39	(2015 Replacement Volume and 2023 Supplement) 20
40	40
41	41	BY repealing 21
42	42	Chapter 767 of the Acts of the General Assembly of 2019 22
43	43	Section 2, 4, and 5 23
44	44
45	45	SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 24
46	46	That the Laws of Maryland read as follows: 25
47	47
48	48	Article – State Personnel and Pensions 26 2 HOUSE BILL 670
49	49
50	50
51	51
52	52	2–509.1. 1
53	53
54	54	(a) (1) Except as provided in subsection (b) of this section, the State shall 2
55	55	continue to include a prescription drug benefit plan in the health insurance benefit options 3
56	56	established under the Program and available to retirees under §§ 2–508 and 2–509 of this 4
57	57	subtitle notwithstanding the enactment of the federal Medicare Prescription Drug, 5
58	58	Improvement, and Modernization Act of 2003 or any other federal law permitting states to 6
59	59	discontinue prescription drug benefit plans to retirees of a state. 7
60	60
61	61	(2) Except as provided in subsection (b) of this section: 8
62	62
63	63	(i) a retiree may elect to cover the retiree’s spouse or dependent 9
64	64	child under the State prescription drug benefit plan under §§ 2–508 and 2–509 of this 10
65	65	subtitle; and 11
66	66
67	67	(ii) if a surviving spouse or surviving dependent child of a retiree is 12
68	68	eligible to enroll in the State prescription drug benefit plan under § 2–508 or § 2–509 of this 13
69	69	subtitle, the surviving spouse or surviving dependent child may elect to enroll in the State 14
70	70	prescription drug benefit plan. 15
71	71
72	72	(b) (1) THIS SUBSECTION APPLI ES ONLY TO A RETIREE WHO BEGAN 16
73	73	STATE SERVICE ON OR A FTER JULY 1, 2011. 17
74	74
75	75	(2) Except as provided in [subsection (c) of this section] PARAGRAPH (3) 18
76	76	OF THIS SUBSECTION , on January 1, 2019, the State shall discontinue prescription drug 19
77	77	benefits for: 20
78	78
79	79	[(1)] (I) a Medicare–eligible retiree; 21
80	80
81	81	[(2)] (II) the Medicare–eligible spouse or surviving spouse of a retiree; and 22
82	82
83	83	[(3)] (III) a Medicare–eligible dependent child or surviving dependent child 23
84	84	of a retiree. 24
85	85
86	86	[(c) (1)] (3) (I) If a retiree is eligible to participate in the prescription 25
87	87	drug benefit plan under Medicare, but the retiree’s spouse or dependent child is not eligible 26
88	88	to participate in a Medicare prescription drug benefit plan, the retiree may elect to cover 27
89	89	the retiree’s spouse or dependent child under the State prescription drug benefit plan. 28
90	90
91	91	[(2)] (II) If the surviving spouse or surviving dependent child of a retiree 29
92	92	is eligible to enroll in the State prescription drug benefit plan under § 2–508 or § 2–509 of 30
93	93	this subtitle, but is not eligible to participate in the prescription drug benefit plan under 31
94	94	Medicare, the surviving spouse or surviving dependent child may elect to enroll in the State 32
95	95	prescription drug benefit plan. 33
96	96	HOUSE BILL 670 3
97	97
98	98
99	99	[(d) (1) This subsection applies only to a retiree, a retiree’s spouse or surviving 1
100	100	spouse, and a retiree’s dependent child or surviving dependent child: 2
101	101
102	102	(i) who is enrolled in a prescription drug benefit plan under 3
103	103	Medicare; 4
104	104
105	105	(ii) if the retiree is retired on or before December 31, 2019; and 5
106	106
107	107	(iii) if the retiree is eligible under § 2–508 or § 2–509 of this subtitle 6
108	108	to enroll and participate in the health insurance benefit options established under the 7
109	109	Program. 8
110	110
111	111	(2) (i) Subject to subparagraph (ii) of this paragraph, on or before 9
112	112	January 1, 2020, the Department shall establish a Maryland State Retiree Prescription 10
113	113	Drug Coverage Program that reimburses a participant for out–of–pocket costs that exceed 11
114	114	the limits established for non–Medicare–eligible retirees in § 2–508(d)(2)(iii) of this 12
115	115	subtitle. 13
116	116
117	117	(ii) The Department may establish an out–of–pocket limit higher 14
118	118	than the limits established in subparagraph (i) of this paragraph for a retiree who qualifies 15
119	119	for a partial State subsidy. 16
120	120
121	121	(3) The Maryland State Retiree Prescription Drug Coverage Program 17
122	122	established under paragraph (2) of this subsection may include: 18
123	123
124	124	(i) a health reimbursement account established in accordance with 19
125	125	§ 105(h) of the Internal Revenue Code; or 20
126	126
127	127	(ii) another program that provides assistance with prescription drug 21
128	128	costs. 22
129	129
130	130	(4) A retiree, a retiree’s spouse or surviving spouse, and a retiree’s 23
131	131	dependent child or surviving dependent child may enroll in the Maryland State Retiree 24
132	132	Prescription Drug Coverage Program during the open enrollment period or any special 25
133	133	enrollment period for retiree health insurance benefit options. 26
134	134
135	135	(e) (1) This subsection applies only to a retiree, a retiree’s spouse or surviving 27
136	136	spouse, and a retiree’s dependent child or surviving dependent child: 28
137	137
138	138	(i) who is enrolled in a prescription drug benefit plan under 29
139	139	Medicare; and 30
140	140
141	141	(ii) if the retiree: 31
142	142
143	143	1. began State service on or before June 30, 2011; 32
144	144
145	145	2. retired on or after January 1, 2020; and 33 4 HOUSE BILL 670
146	146
147	147
148	148
149	149	3. is eligible under § 2–508 or § 2–509 of this subtitle to enroll 1
150	150	and participate in the health insurance benefit options established under the Program. 2
151	151
152	152	(2) (i) Subject to subparagraph (ii) of this paragraph, on or before 3
153	153	January 1, 2020, the Department shall establish a Maryland State Retiree Catastrophic 4
154	154	Prescription Drug Assistance Program that reimburses a participant for out–of–pocket 5
155	155	costs after the participant has entered catastrophic coverage under a prescription drug 6
156	156	benefit plan under Medicare. 7
157	157
158	158	(ii) The Department may establish a maximum reimbursement 8
159	159	amount for a retiree who qualifies for a partial State subsidy. 9
160	160
161	161	(3) The Maryland State Retiree Catastrophic Prescription Drug Assistance 10
162	162	Program under paragraph (2) of this subsection may provide reimbursements through: 11
163	163
164	164	(i) a health reimbursement account established in accordance with 12
165	165	§ 105(h) of the Internal Revenue Code; or 13
166	166
167	167	(ii) another program that provides assistance with prescription drug 14
168	168	costs. 15
169	169
170	170	(4) A retiree, a retiree’s spouse or surviving spouse, and a retiree’s 16
171	171	dependent child or surviving dependent child may enroll in the Maryland State Retiree 17
172	172	Catastrophic Prescription Drug Assistance Program during the open enrollment period or 18
173	173	any special enrollment period for retiree health insurance benefit options. 19
174	174
175	175	(f) (1) This subsection applies only to a retiree, a retiree’s spouse or surviving 20
176	176	spouse, and a retiree’s dependent child or surviving dependent child: 21
177	177
178	178	(i) who is enrolled in: 22
179	179
180	180	1. the Maryland State Retiree Prescription Drug Coverage 23
181	181	Program established under subsection (d) of this section; or 24
182	182
183	183	2. the Maryland State Retiree Catastrophic Prescription 25
184	184	Drug Assistance Program established under subsection (e) of this section; and 26
185	185
186	186	(ii) if the retiree is eligible under § 2–508 or § 2–509 of this subtitle 27
187	187	to enroll and participate in the health insurance benefit options established under the 28
188	188	Program. 29
189	189
190	190	(2) (i) On or before January 1, 2020, the Department shall establish a 30
191	191	Maryland State Retiree Life–Sustaining Prescription Drug Assistance Program that 31
192	192	reimburses a participant for out–of–pocket costs for a life–sustaining prescription drug that 32
193	193	is: 33
194	194	HOUSE BILL 670 5
195	195
196	196
197	197	1. covered by the prescription drug benefit plan in the health 1
198	198	insurance benefit options established under the Program; and 2
199	199
200	200	2. not covered by the prescription drug benefit plan under 3
201	201	Medicare in which the participant is enrolled. 4
202	202
203	203	(ii) The Department shall develop a list of the prescription drugs 5
204	204	that qualify for reimbursement under subparagraph (i) of this paragraph. 6
205	205
206	206	(iii) The Department may establish maximum reimbursement 7
207	207	amounts for a retiree who qualifies for a partial State subsidy. 8
208	208
209	209	(3) The Maryland State Retiree Life–Sustaining Prescription Drug 9
210	210	Assistance Program established under paragraph (2) of this subsection may provide 10
211	211	reimbursements through: 11
212	212
213	213	(i) a health reimbursement account established in accordance with 12
214	214	§ 105(h) of the Internal Revenue Code; or 13
215	215
216	216	(ii) another program that provides assistance with prescription drug 14
217	217	costs. 15
218	218
219	219	(4) A retiree, a retiree’s spouse or surviving spouse, and a retiree’s 16
220	220	dependent child or surviving dependent child shall be automatically enrolled in the 17
221	221	Maryland State Retiree Life–Sustaining Prescription Drug Assistance Program on 18
222	222	enrollment in: 19
223	223
224	224	(i) the Maryland State Retiree Prescription Drug Coverage Program 20
225	225	established under subsection (d) of this section; or 21
226	226
227	227	(ii) the Maryland State Retiree Catastrophic Prescription Drug 22
228	228	Assistance Program established under subsection (e) of this section. 23
229	229
230	230	(g) (1) Subject to paragraph (2) of this subsection, not later than July 1 of each 24
231	231	year, the Secretary shall provide written certified notice of the change in the State 25
232	232	prescription drug benefit plan under this section to the individuals who will become eligible 26
233	233	in the next calendar year to enroll in the: 27
234	234
235	235	(i) Maryland State Retiree Prescription Drug Coverage Program; 28
236	236
237	237	(ii) Maryland State Retiree Catastrophic Prescription Drug 29
238	238	Assistance Program; or 30
239	239
240	240	(iii) Maryland State Retiree Life–Sustaining Prescription Drug 31
241	241	Assistance Program. 32
242	242
243	243	(2) The notice shall include information regarding: 33 6 HOUSE BILL 670
244	244
245	245
246	246
247	247	(i) coverage options available in the Medicare prescription drug 1
248	248	benefit plan, including options that are similar to the prescription drug benefit plan in the 2
249	249	health insurance benefit options established under the Program; 3
250	250
251	251	(ii) the potential for significant penalties if an individual does not 4
252	252	promptly choose a Medicare prescription drug benefit plan immediately on termination of 5
253	253	the individual’s participation in the State prescription drug benefit plan; 6
254	254
255	255	(iii) the programs available under subsections (d), (e), and (f) of this 7
256	256	section; and 8
257	257
258	258	(iv) any additional resources made available by the Department in 9
259	259	accordance with this section. 10
260	260
261	261	(h) (1) The Department shall ensure Medicare–eligible retirees have access to 11
262	262	one–on–one counseling services to assist retirees in selecting a Medicare prescription drug 12
263	263	benefit plan. 13
264	264
265	265	(2) The Department shall develop a plan to communicate to 14
266	266	Medicare–eligible retirees the availability of: 15
267	267
268	268	(i) the programs under subsections (d), (e), and (f) of this section; 16
269	269	and 17
270	270
271	271	(ii) services and information regarding prescription drug benefit 18
272	272	plans under Medicare. 19
273	273
274	274	(3) On or before December 31, 2019, the Department shall submit a report 20
275	275	to the Senate Budget and Taxation Committee and the House Appropriations Committee, 21
276	276	in accordance with § 2–1257 of the State Government Article, on the plan developed under 22
277	277	paragraph (2) of this subsection. 23
278	278
279	279	(4) The report required under paragraph (3) of this subsection shall 24
280	280	include: 25
281	281
282	282	(i) options for providing one–on–one counseling, including: 26
283	283
284	284	1. in–person, over–the–phone, or web–based counseling; 27
285	285
286	286	2. the times at which one–on–one counseling will be 28
287	287	available; 29
288	288
289	289	3. a plan to ensure equitab le geographic access to 30
290	290	one–on–one counseling; and 31
291	291
292	292	4. entering into a statewide contract with an employee 32 HOUSE BILL 670 7
293	293
294	294
295	295	benefits administrator or similar entity to provide one–on–one counseling services; 1
296	296
297	297	(ii) plans for holding seminars in every county of the State to provide 2
298	298	information regarding eligibility for and available benefits under the programs established 3
299	299	under subsections (d), (e), and (f) of this section; 4
300	300
301	301	(iii) plans for providing access to a web–based overview and 5
302	302	interactive website that provide information on: 6
303	303
304	304	1. Medicare prescription drug benefit plans; and 7
305	305
306	306	2. subsidy and financial assistance programs for low–income 8
307	307	individuals; and 9
308	308
309	309	(iv) plans for providing a toll–free hotline for reporting issues and 10
310	310	concerns regarding the services provided in accordance with this paragraph. 11
311	311
312	312	(i) Subject to the requirements of § 13–108 of the State Finance and Procurement 12
313	313	Article, the Department may make an emergency procurement for: 13
314	314
315	315	(1) staff required to carry out the provisions of this section; and 14
316	316
317	317	(2) a third party to administer health reimbursement accounts established 15
318	318	under this section. 16
319	319
320	320	(j) The Department shall submit quarterly reports to the Governor and, in 17
321	321	accordance with § 2–1257 of the State Government Article, the House Appropriations 18
322	322	Committee, the Senate Budget and Taxation Committee, and the Joint Committee on 19
323	323	Pensions, on: 20
324	324
325	325	(1) the status of establishing the programs under subsections (d), (e), and 21
326	326	(f) of this section, including: 22
327	327
328	328	(i) the status of procuring any contracts necessary to operate the 23
329	329	programs; and 24
330	330
331	331	(ii) the prescription drugs determined to qualify for reimbursement 25
332	332	under the Maryland State Retiree Life–Sustaining Prescription Drug Assistance Program 26
333	333	under subsection (f) of this section; 27
334	334
335	335	(2) the availability of one–on–one counseling services required under 28
336	336	subsection (h) of this section; 29
337	337
338	338	(3) the details of the health reimbursement accounts or other programs to 30
339	339	provide assistance with prescription drug costs for individuals enrolled in the programs 31
340	340	under subsections (d), (e), and (f) of this section, including: 32
341	341	8 HOUSE BILL 670
342	342
343	343
344	344	(i) the specific out–of–pocket costs eligible for reimbursement; 1
345	345
346	346	(ii) the required process for receiving reimbursement; 2
347	347
348	348	(iii) the method of reimbursement; 3
349	349
350	350	(iv) the timing of reimbursement; and 4
351	351
352	352	(v) a plan to use debit cards to process reimbursements in a 5
353	353	convenient and efficient manner; and 6
354	354
355	355	(4) in total and by category for the previous quarter, the number of issues 7
356	356	and concerns reported to the hotline. 8
357	357
358	358	(k) The Department shall adopt regulations to implement the provisions of this 9
359	359	section.] 10
360	360
361	361	Chapter 767 of the Acts of 2019 11
362	362
363	363	[SECTION 2. AND BE IT FURTHER ENACTED, That, notwithstanding any other 12
364	364	provision of law, if the final resolution of the injunction issued in the U.S. District Court 13
365	365	for the District of Maryland in Fitch v. State of Maryland et al, Case No. 1:18 14
366	366	CV–0287–PM (D. Md.) occurs on a date that is: 15
367	367
368	368	(1) less than 9 months before the first day of the next State health benefits 16
369	369	open enrollment period, the following shall begin on the first day of the second State health 17
370	370	benefits plan year immediately following the resolution: 18
371	371
372	372	(i) the elimination of the State prescription drug benefits for 19
373	373	Medicare–eligible retirees, Medicare–eligible spouses or surviving spouses of retirees, and 20
374	374	Medicare–eligible dependent children or surviving dependent children of retirees under § 21
375	375	2–509.1(b) of the State Personnel and Pensions Article; 22
376	376
377	377	(ii) the establishment of the Maryland State Retiree Prescription 23
378	378	Drug Coverage Program, the Maryland State Retiree Catastrophic Prescription Drug 24
379	379	Assistance Program, and the Maryland State Retiree Life–Sustaining Prescription Drug 25
380	380	Assistance Program in § 2–509.1(d), (e), and (f) of the State Personnel and Pensions Article, 26
381	381	respectively, as enacted by Section 1 of this Act; and 27
382	382
383	383	(iii) the provision of written certified notice to individuals under § 28
384	384	2–509.1(g) of the State Personnel and Pensions Article, as enacted by Section 1 of this Act; 29
385	385	or 30
386	386
387	387	(2) 9 months or more before the first day of the next State health benefits 31
388	388	open enrollment period, the following shall begin on the first day of the State health 32
389	389	benefits plan year immediately following the resolution following the next open enrollment 33
390	390	period: 34 HOUSE BILL 670 9
391	391
392	392
393	393
394	394	(i) the elimination of the State prescription drug benefits for 1
395	395	Medicare–eligible retirees, Medicare–eligible spouses or surviving spouses of retirees, and 2
396	396	Medicare–eligible dependent children or surviving dependent children of retirees under § 3
397	397	2–509.1(b) of the State Personnel and Pensions Article; 4
398	398
399	399	(ii) the establishment of the Maryland State Retiree Prescription 5
400	400	Drug Coverage Program, the Maryland State Retiree Catastrophic Prescription Drug 6
401	401	Assistance Program, and the Maryland State Retiree Life–Sustaining Prescription Drug 7
402	402	Assistance Program in § 2–509.1(d), (e), and (f) of the State Personnel and Pensions Article, 8
403	403	respectively, as enacted by Section 1 of this Act; and 9
404	404
405	405	(iii) the provision of written certified notice to individuals under § 10
406	406	2–509.1(g) of the State Personnel and Pensions Article, as enacted by Section 1 of this Act.] 11
407	407
408	408	[SECTION 4. AND BE IT FURTHER ENACTED, That it is the intent of the General 12
409	409	Assembly that the Department of Budget and Management establish the Maryland State 13
410	410	Retiree Prescription Drug Coverage Program, the Maryland State Retiree Catastrophic 14
411	411	Prescription Drug Assistance Program, and the Maryland State Retiree Life–Sustaining 15
412	412	Prescription Drug Assistance Program in § 2–509.1(d), (e), and (f) of the State Personnel 16
413	413	and Pensions Article, respectively, in a manner that allows retirees to access 17
414	414	reimbursement at the time of prescription drug purchase, through a mechanism such as 18
415	415	debit cards.] 19
416	416
417	417	[SECTION 5. AND BE IT FURTHER ENACTED, That it is the intent of the General 20
418	418	Assembly that the Department of Budget and Management attend at least one meeting 21
419	419	each year of the Joint Committee on Pensions to update the Committee on implementation 22
420	420	of the provisions of this Act.] 23
421	421
422	422	SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 24
423	423	1, 2024. 25
424	424