Maryland 2025 Regular Session

Maryland House Bill HB356 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	hb0356
6	6
7	7	HOUSE BILL 356
8	8	P6, P4 5lr0816
9	9	HB 670/24 – APP
10	10	By: Delegates Grammer, Arikan, Chisholm, Fisher, Nawrocki, and Szeliga
11	11	Introduced and read first time: January 16, 2025
12	12	Assigned to: Appropriations
13	13
14	14	A BILL ENTITLED
15	15
16	16	AN ACT concerning 1
17	17
18	18	State Prescription Drug Benefits – Retirees 2
19	19
20	20	FOR the purpose of authorizing certain retirees who began State service before a certain 3
21	21	date to be eligible for prescription drug benefits in the State Employee and Retiree 4
22	22	Health and Welfare Benefits Program; specifying that prescription drug benefits 5
23	23	shall be discontinued for certain Medicare–eligible retirees who began State service 6
24	24	on or after a certain date and their Medicare–eligible spouses and dependent 7
25	25	children; repealing the Maryland State Retiree Prescription Drug Coverage 8
26	26	Program, the Maryland State Retiree Catastrophic Prescription Drug Assistance 9
27	27	Program, and the Maryland State Retiree Life–Sustaining Prescription Drug 10
28	28	Assistance Program; repealing a requirement that the Secretary of Budget and 11
29	29	Management provide a certain notice; repealing a requirement for the Department 12
30	30	of Budget and Management to submit certain reports and ensure Medicare–eligible 13
31	31	retirees have access to certain services; and generally relating to State prescription 14
32	32	drug benefits for retirees from State employment. 15
33	33
34	34	BY repealing and reenacting, with amendments, 16
35	35	Article – State Personnel and Pensions 17
36	36	Section 2–509.1 18
37	37	Annotated Code of Maryland 19
38	38	(2024 Replacement Volume and 2024 Supplement) 20
39	39
40	40	BY repealing 21
41	41	Chapter 767 of the Acts of the General Assembly of 2019 22
42	42	Section 2, 4, and 5 23
43	43
44	44	SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 24
45	45	That the Laws of Maryland read as follows: 25
46	46
47	47	Article – State Personnel and Pensions 26
48	48	2 HOUSE BILL 356
49	49
50	50
51	51	2–509.1. 1
52	52
53	53	(a) (1) Except as provided in subsection (b) of this section, the State shall 2
54	54	continue to include a prescription drug benefit plan in the health insurance benefit options 3
55	55	established under the Program and available to retirees under §§ 2–508 and 2–509 of this 4
56	56	subtitle notwithstanding the enactment of the federal Medicare Prescription Drug, 5
57	57	Improvement, and Modernization Act of 2003 or any other federal law permitting states to 6
58	58	discontinue prescription drug benefit plans to retirees of a state. 7
59	59
60	60	(2) Except as provided in subsection (b) of this section: 8
61	61
62	62	(i) a retiree may elect to cover the retiree’s spouse or dependent 9
63	63	child under the State prescription drug benefit plan under §§ 2–508 and 2–509 of this 10
64	64	subtitle; and 11
65	65
66	66	(ii) if a surviving spouse or surviving dependent child of a retiree is 12
67	67	eligible to enroll in the State prescription drug benefit plan under § 2–508 or § 2–509 of this 13
68	68	subtitle, the surviving spouse or surviving dependent child may elect to enroll in the State 14
69	69	prescription drug benefit plan. 15
70	70
71	71	(b) (1) THIS SUBSECTION APPLI ES ONLY TO A RETIREE WHO BEGAN 16
72	72	STATE SERVICE ON OR A FTER JULY 1, 2011. 17
73	73
74	74	(2) Except as provided in [subsection (c) of this section] PARAGRAPH (3) 18
75	75	OF THIS SUBSECTION , on January 1, 2019, the State shall discontinue prescription drug 19
76	76	benefits for: 20
77	77
78	78	[(1)] (I) a Medicare–eligible retiree; 21
79	79
80	80	[(2)] (II) the Medicare–eligible spouse or surviving spouse of a retiree; and 22
81	81
82	82	[(3)] (III) a Medicare–eligible dependent child or surviving dependent child 23
83	83	of a retiree. 24
84	84
85	85	[(c) (1)] (3) (I) If a retiree is eligible to participate in the prescription 25
86	86	drug benefit plan under Medicare, but the retiree’s spouse or dependent child is not eligible 26
87	87	to participate in a Medicare prescription drug benefit plan, the retiree may elect to cover 27
88	88	the retiree’s spouse or dependent child under the State prescription drug benefit plan. 28
89	89
90	90	[(2)] (II) If the surviving spouse or surviving dependent child of a retiree 29
91	91	is eligible to enroll in the State prescription drug benefit plan under § 2–508 or § 2–509 of 30
92	92	this subtitle, but is not eligible to participate in the prescription drug benefit plan under 31
93	93	Medicare, the surviving spouse or surviving dependent child may elect to enroll in the State 32
94	94	prescription drug benefit plan. 33
95	95
96	96	[(d) (1) This subsection applies only to a retiree, a retiree’s spouse or surviving 34 HOUSE BILL 356 3
97	97
98	98
99	99	spouse, and a retiree’s dependent child or surviving dependent child: 1
100	100
101	101	(i) who is enrolled in a prescription drug benefit plan under 2
102	102	Medicare; 3
103	103
104	104	(ii) if the retiree is retired on or before December 31, 2019; and 4
105	105
106	106	(iii) if the retiree is eligible under § 2–508 or § 2–509 of this subtitle 5
107	107	to enroll and participate in the health insurance benefit options established under the 6
108	108	Program. 7
109	109
110	110	(2) (i) Subject to subparagraph (ii) of this paragraph, on or before 8
111	111	January 1, 2020, the Department shall establish a Maryland State Retiree Prescription 9
112	112	Drug Coverage Program that reimburses a participant for out–of–pocket costs that exceed 10
113	113	the limits established for non–Medicare–eligible retirees in § 2–508(d)(2)(iii) of this 11
114	114	subtitle. 12
115	115
116	116	(ii) The Department may establish an out–of–pocket limit higher 13
117	117	than the limits established in subparagraph (i) of this paragraph for a retiree who qualifies 14
118	118	for a partial State subsidy. 15
119	119
120	120	(3) The Maryland State Retiree Prescription Drug Coverage Program 16
121	121	established under paragraph (2) of this subsection may include: 17
122	122
123	123	(i) a health reimbursement account established in accordance with 18
124	124	§ 105(h) of the Internal Revenue Code; or 19
125	125
126	126	(ii) another program that provides assistance with prescription drug 20
127	127	costs. 21
128	128
129	129	(4) A retiree, a retiree’s spouse or surviving spouse, and a retiree’s 22
130	130	dependent child or surviving dependent child may enroll in the Maryland State Retiree 23
131	131	Prescription Drug Coverage Program during the open enrollment period or any special 24
132	132	enrollment period for retiree health insurance benefit options. 25
133	133
134	134	(e) (1) This subsection applies only to a retiree, a retiree’s spouse or surviving 26
135	135	spouse, and a retiree’s dependent child or surviving dependent child: 27
136	136
137	137	(i) who is enrolled in a prescription drug benefit plan under 28
138	138	Medicare; and 29
139	139
140	140	(ii) if the retiree: 30
141	141
142	142	1. began State service on or before June 30, 2011; 31
143	143
144	144	2. retired on or after January 1, 2020; and 32
145	145	4 HOUSE BILL 356
146	146
147	147
148	148	3. is eligible under § 2–508 or § 2–509 of this subtitle to enroll 1
149	149	and participate in the health insurance benefit options established under the Program. 2
150	150
151	151	(2) (i) Subject to subparagraph (ii) of this paragraph, on or before 3
152	152	January 1, 2020, the Department shall establish a Maryland State Retiree Catastrophic 4
153	153	Prescription Drug Assistance Program that reimburses a participant for out–of–pocket 5
154	154	costs after the participant has entered catastrophic coverage under a prescription drug 6
155	155	benefit plan under Medicare. 7
156	156
157	157	(ii) The Department may establish a maximum reimbursement 8
158	158	amount for a retiree who qualifies for a partial State subsidy. 9
159	159
160	160	(3) The Maryland State Retiree Catastrophic Prescription Drug Assistance 10
161	161	Program under paragraph (2) of this subsection may provide reimbursements through: 11
162	162
163	163	(i) a health reimbursement account established in accordance with 12
164	164	§ 105(h) of the Internal Revenue Code; or 13
165	165
166	166	(ii) another program that provides assistance with prescription drug 14
167	167	costs. 15
168	168
169	169	(4) A retiree, a retiree’s spouse or surviving spouse, and a retiree’s 16
170	170	dependent child or surviving dependent child may enroll in the Maryland State Retiree 17
171	171	Catastrophic Prescription Drug Assistance Program during the open enrollment period or 18
172	172	any special enrollment period for retiree health insurance benefit options. 19
173	173
174	174	(f) (1) This subsection applies only to a retiree, a retiree’s spouse or surviving 20
175	175	spouse, and a retiree’s dependent child or surviving dependent child: 21
176	176
177	177	(i) who is enrolled in: 22
178	178
179	179	1. the Maryland State Retiree Prescription Drug Coverage 23
180	180	Program established under subsection (d) of this section; or 24
181	181
182	182	2. the Maryland State Retiree Catastrophic Prescription 25
183	183	Drug Assistance Program established under subsection (e) of this section; and 26
184	184
185	185	(ii) if the retiree is eligible under § 2–508 or § 2–509 of this subtitle 27
186	186	to enroll and participate in the health insurance benefit options established under the 28
187	187	Program. 29
188	188
189	189	(2) (i) On or before January 1, 2020, the Department shall establish a 30
190	190	Maryland State Retiree Life–Sustaining Prescription Drug Assistance Program that 31
191	191	reimburses a participant for out–of–pocket costs for a life–sustaining prescription drug that 32
192	192	is: 33
193	193
194	194	1. covered by the prescription drug benefit plan in the health 34 HOUSE BILL 356 5
195	195
196	196
197	197	insurance benefit options established under the Program; and 1
198	198
199	199	2. not covered by the prescription drug benefit plan under 2
200	200	Medicare in which the participant is enrolled. 3
201	201
202	202	(ii) The Department shall develop a list of the prescription drugs 4
203	203	that qualify for reimbursement under subparagraph (i) of this paragraph. 5
204	204
205	205	(iii) The Department may establish maximum reimbursement 6
206	206	amounts for a retiree who qualifies for a partial State subsidy. 7
207	207
208	208	(3) The Maryland State Retiree Life–Sustaining Prescription Drug 8
209	209	Assistance Program established under paragraph (2) of this subsection may provide 9
210	210	reimbursements through: 10
211	211
212	212	(i) a health reimbursement account established in accordance with 11
213	213	§ 105(h) of the Internal Revenue Code; or 12
214	214
215	215	(ii) another program that provides assistance with prescription drug 13
216	216	costs. 14
217	217
218	218	(4) A retiree, a retiree’s spouse or surviving spouse, and a retiree’s 15
219	219	dependent child or surviving dependent child shall be automatically enrolled in the 16
220	220	Maryland State Retiree Life–Sustaining Prescription Drug Assistance Program on 17
221	221	enrollment in: 18
222	222
223	223	(i) the Maryland State Retiree Prescription Drug Coverage Program 19
224	224	established under subsection (d) of this section; or 20
225	225
226	226	(ii) the Maryland State Retiree Catastrophic Prescription Drug 21
227	227	Assistance Program established under subsection (e) of this section. 22
228	228
229	229	(g) (1) Subject to paragraph (2) of this subsection, not later than July 1 of each 23
230	230	year, the Secretary shall provide written certified notice of the change in the State 24
231	231	prescription drug benefit plan under this section to the individuals who will become eligible 25
232	232	in the next calendar year to enroll in the: 26
233	233
234	234	(i) Maryland State Retiree Prescription Drug Coverage Program; 27
235	235
236	236	(ii) Maryland State Retiree Catastrophic Prescription Drug 28
237	237	Assistance Program; or 29
238	238
239	239	(iii) Maryland State Retiree Life–Sustaining Prescription Drug 30
240	240	Assistance Program. 31
241	241
242	242	(2) The notice shall include information regarding: 32
243	243	6 HOUSE BILL 356
244	244
245	245
246	246	(i) coverage options available in the Medicare prescription drug 1
247	247	benefit plan, including options that are similar to the prescription drug benefit plan in the 2
248	248	health insurance benefit options established under the Program; 3
249	249
250	250	(ii) the potential for significant penalties if an individual does not 4
251	251	promptly choose a Medicare prescription drug benefit plan immediately on termination of 5
252	252	the individual’s participation in the State prescription drug benefit plan; 6
253	253
254	254	(iii) the programs available under subsections (d), (e), and (f) of this 7
255	255	section; and 8
256	256
257	257	(iv) any additional resources made available by the Department in 9
258	258	accordance with this section. 10
259	259
260	260	(h) (1) The Department shall ensure Medicare–eligible retirees have access to 11
261	261	one–on–one counseling services to assist retirees in selecting a Medicare prescription drug 12
262	262	benefit plan. 13
263	263
264	264	(2) The Department shall develop a plan to communicate to 14
265	265	Medicare–eligible retirees the availability of: 15
266	266
267	267	(i) the programs under subsections (d), (e), and (f) of this section; 16
268	268	and 17
269	269
270	270	(ii) services and information regarding prescription drug benefit 18
271	271	plans under Medicare. 19
272	272
273	273	(3) On or before December 31, 2019, the Department shall submit a report 20
274	274	to the Senate Budget and Taxation Committee and the House Appropriations Committee, 21
275	275	in accordance with § 2–1257 of the State Government Article, on the plan developed under 22
276	276	paragraph (2) of this subsection. 23
277	277
278	278	(4) The report required under paragraph (3) of this subsection shall 24
279	279	include: 25
280	280
281	281	(i) options for providing one–on–one counseling, including: 26
282	282
283	283	1. in–person, over–the–phone, or web–based counseling; 27
284	284
285	285	2. the times at which one–on–one counseling will be 28
286	286	available; 29
287	287
288	288	3. a plan to ensure equitable geographic access to 30
289	289	one–on–one counseling; and 31
290	290
291	291	4. entering into a statewide contract with an employee 32
292	292	benefits administrator or similar entity to provide one–on–one counseling services; 33 HOUSE BILL 356 7
293	293
294	294
295	295
296	296	(ii) plans for holding seminars in every county of the State to provide 1
297	297	information regarding eligibility for and available benefits under the programs established 2
298	298	under subsections (d), (e), and (f) of this section; 3
299	299
300	300	(iii) plans for providing access to a web–based overview and 4
301	301	interactive website that provide information on: 5
302	302
303	303	1. Medicare prescription drug benefit plans; and 6
304	304
305	305	2. subsidy and financial assistance programs for low–income 7
306	306	individuals; and 8
307	307
308	308	(iv) plans for providing a toll–free hotline for reporting issues and 9
309	309	concerns regarding the services provided in accordance with this paragraph. 10
310	310
311	311	(i) Subject to the requirements of § 13–108 of the State Finance and Procurement 11
312	312	Article, the Department may make an emergency procurement for: 12
313	313
314	314	(1) staff required to carry out the provisions of this section; and 13
315	315
316	316	(2) a third party to administer health reimbursement accounts established 14
317	317	under this section. 15
318	318
319	319	(j) The Department shall submit quarterly reports to the Governor and, in 16
320	320	accordance with § 2–1257 of the State Government Article, the House Appropriations 17
321	321	Committee, the Senate Budget and Taxation Committee, and the Joint Committee on 18
322	322	Pensions, on: 19
323	323
324	324	(1) the status of establishing the programs under subsections (d), (e), and 20
325	325	(f) of this section, including: 21
326	326
327	327	(i) the status of procuring any contracts necessary to operate the 22
328	328	programs; and 23
329	329
330	330	(ii) the prescription drugs determined to qualify for reimbursement 24
331	331	under the Maryland State Retiree Life–Sustaining Prescription Drug Assistance Program 25
332	332	under subsection (f) of this section; 26
333	333
334	334	(2) the availability of one–on–one counseling services required under 27
335	335	subsection (h) of this section; 28
336	336
337	337	(3) the details of the health reimbursement accounts or other programs to 29
338	338	provide assistance with prescription drug costs for individuals enrolled in the programs 30
339	339	under subsections (d), (e), and (f) of this section, including: 31
340	340
341	341	(i) the specific out–of–pocket costs eligible for reimbursement; 32 8 HOUSE BILL 356
342	342
343	343
344	344
345	345	(ii) the required process for receiving reimbursement; 1
346	346
347	347	(iii) the method of reimbursement; 2
348	348
349	349	(iv) the timing of reimbursement; and 3
350	350
351	351	(v) a plan to use debit cards to process reimbursements in a 4
352	352	convenient and efficient manner; and 5
353	353
354	354	(4) in total and by category for the previous quarter, the number of issues 6
355	355	and concerns reported to the hotline. 7
356	356
357	357	(k) The Department shall adopt regulations to implement the provisions of this 8
358	358	section.] 9
359	359
360	360	Chapter 767 of the Acts of 2019 10
361	361
362	362	[SECTION 2. AND BE IT FURTHER ENACTED, That, notwithstanding any other 11
363	363	provision of law, if the final resolution of the injunction issued in the U.S. District Court 12
364	364	for the District of Maryland in Fitch v. State of Maryland et al, Case No. 1:18 13
365	365	CV–0287–PM (D. Md.) occurs on a date that is: 14
366	366
367	367	(1) less than 9 months before the first day of the next State health benefits 15
368	368	open enrollment period, the following shall begin on the first day of the second State health 16
369	369	benefits plan year immediately following the resolution: 17
370	370
371	371	(i) the elimination of the State prescription drug benefits for 18
372	372	Medicare–eligible retirees, Medicare–eligible spouses or surviving spouses of retirees, and 19
373	373	Medicare–eligible dependent children or surviving dependent children of retirees under § 20
374	374	2–509.1(b) of the State Personnel and Pensions Article; 21
375	375
376	376	(ii) the establishment of the Maryland State Retiree Prescription 22
377	377	Drug Coverage Program, the Maryland State Retiree Catastrophic Prescription Drug 23
378	378	Assistance Program, and the Maryland State Retiree Life–Sustaining Prescription Drug 24
379	379	Assistance Program in § 2–509.1(d), (e), and (f) of the State Personnel and Pensions Article, 25
380	380	respectively, as enacted by Section 1 of this Act; and 26
381	381
382	382	(iii) the provision of written certified notice to individuals under § 27
383	383	2–509.1(g) of the State Personnel and Pensions Article, as enacted by Section 1 of this Act; 28
384	384	or 29
385	385
386	386	(2) 9 months or more before the first day of the next State health benefits 30
387	387	open enrollment period, the following shall begin on the first day of the State health 31
388	388	benefits plan year immediately following the resolution following the next open enrollment 32
389	389	period: 33
390	390	HOUSE BILL 356 9
391	391
392	392
393	393	(i) the elimination of the State prescription drug benefits for 1
394	394	Medicare–eligible retirees, Medicare–eligible spouses or surviving spouses of retirees, and 2
395	395	Medicare–eligible dependent children or surviving dependent children of retirees under § 3
396	396	2–509.1(b) of the State Personnel and Pensions Article; 4
397	397
398	398	(ii) the establishment of the Maryland State Retiree Prescription 5
399	399	Drug Coverage Program, the Maryland State Retiree Catastrophic Prescription Drug 6
400	400	Assistance Program, and the Maryland State Retiree Life–Sustaining Prescription Drug 7
401	401	Assistance Program in § 2–509.1(d), (e), and (f) of the State Personnel and Pensions Article, 8
402	402	respectively, as enacted by Section 1 of this Act; and 9
403	403
404	404	(iii) the provision of written certified notice to individuals under § 10
405	405	2–509.1(g) of the State Personnel and Pensions Article, as enacted by Section 1 of this Act.] 11
406	406
407	407	[SECTION 4. AND BE IT FURTHER ENACTED, That it is the intent of the General 12
408	408	Assembly that the Department of Budget and Management establish the Maryland State 13
409	409	Retiree Prescription Drug Coverage Program, the Maryland State Retiree Catastrophic 14
410	410	Prescription Drug Assistance Program, and the Maryland State Retiree Life–Sustaining 15
411	411	Prescription Drug Assistance Program in § 2–509.1(d), (e), and (f) of the State Personnel 16
412	412	and Pensions Article, respectively, in a manner that allows retirees to access 17
413	413	reimbursement at the time of prescription drug purchase, through a mechanism such as 18
414	414	debit cards.] 19
415	415
416	416	[SECTION 5. AND BE IT FURTHER ENACTED, That it is the intent of the General 20
417	417	Assembly that the Department of Budget and Management attend at least one meeting 21
418	418	each year of the Joint Committee on Pensions to update the Committee on implementation 22
419	419	of the provisions of this Act.] 23
420	420
421	421	SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 24
422	422	1, 2025. 25
423	423