Maryland 2025 Regular Session

Maryland Senate Bill SB211 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 EXISTING LAW.
4	4	[Brackets] indicate matter deleted from existing law.
5	5	sb0211
6	6
7	7	SENATE BILL 211
8	8	J5 5lr0089
9	9	(PRE–FILED) CF HB 116
10	10	By: Chair, Finance Committee (By Request – Departmental – Maryland Insurance
11	11	Administration)
12	12	Requested: October 6, 2024
13	13	Introduced and read first time: January 8, 2025
14	14	Assigned to: Finance
15	15
16	16	A BILL ENTITLED
17	17
18	18	AN ACT concerning 1
19	19
20	20	Health Insurance – Federal Conformity – Definitions of Health Benefit Plan 2
21	21
22	22	FOR the purpose of altering certain definitions of “health benefit plan” to conform to federal 3
23	23	regulatory requirements regarding hospital indemnity; and generally relating to 4
24	24	health insurance and conformity with federal law. 5
25	25
26	26	BY repealing and reenacting, without amendments, 6
27	27	Article – Insurance 7
28	28	Section 15–1201(a), 15–1301(a), 15–1401(a), and 31–101(a) 8
29	29	Annotated Code of Maryland 9
30	30	(2017 Replacement Volume and 2024 Supplement) 10
31	31
32	32	BY repealing and reenacting, with amendments, 11
33	33	Article – Insurance 12
34	34	Section 15–1201(i)(3)(ix), 15–1301(l)(2)(iv), 15–1401(h)(2)(iii), and 31–101(g)(4) 13
35	35	Annotated Code of Maryland 14
36	36	(2017 Replacement Volume and 2024 Supplement) 15
37	37
38	38	SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 16
39	39	That the Laws of Maryland read as follows: 17
40	40
41	41	Article – Insurance 18
42	42
43	43	15–1201. 19
44	44
45	45	(a) In this subtitle the following words have the meanings indicated. 20
46	46
47	47	(i) (3) “Health benefit plan” does not include: 21
48	48	2 SENATE BILL 211
49	49
50	50
51	51	(ix) hospital indemnity or other fixed indemnity insurance if[: 1
52	52
53	53	1. the benefits are provided under a separate policy, 2
54	54	certificate, or contract; 3
55	55
56	56	2. there is no coordination between the provision of the 4
57	57	benefits and an exclusion of benefits under any group health plan maintained by the same 5
58	58	employer; 6
59	59
60	60	3. the benefits are paid with respect to an event, without 7
61	61	regard to whether benefits are provided with respect to the event under any group health 8
62	62	plan maintained by the same employer; and 9
63	63
64	64	4. the benefits are payable in a fixed dollar amount per 10
65	65	period of time, regardless of the amount of expenses incurred] THE COVERAGE QUALIFI ES 11
66	66	FOR THE EXCEPTION DE SCRIBED IN 45 C.F.R. § 146.145(B)(4); or 12
67	67
68	68	15–1301. 13
69	69
70	70	(a) In this subtitle the following words have the meanings indicated. 14
71	71
72	72	(l) (2) “Health benefit plan” does not include: 15
73	73
74	74	(iv) hospital indemnity or other fixed indemnity insurance if[: 16
75	75
76	76	1. offered as independent, noncoordinated benefits; 17
77	77
78	78	2. the benefits are paid in a fixed dollar amount per period of 18
79	79	hospitalization, illness, or service, regardless of the amount of expenses incurred and of the 19
80	80	amount of benefits provided with respect to the event or service under any other health 20
81	81	coverage; and 21
82	82
83	83	3. a notice is displayed prominently in the application 22
84	84	materials, in at least 14 point type, that has the following language in capital letters: “This 23
85	85	is a supplement to health insurance and is not a substitute for major medical coverage. 24
86	86	Lack of major medical coverage (or other minimum essential coverage) may result in an 25
87	87	additional payment with your taxes.”] THE COVERAGE QUALIFI ES FOR THE EXCEPTION 26
88	88	DESCRIBED IN 45 C.F.R. § 148.220(B)(4); or 27
89	89
90	90	15–1401. 28
91	91
92	92	(a) In this subtitle the following words have the meanings indicated. 29
93	93
94	94	(h) (2) “Health benefit plan” does not include: 30
95	95	SENATE BILL 211 3
96	96
97	97
98	98	(iii) the following benefits if offered as independent, noncoordinated 1
99	99	benefits: 2
100	100
101	101	1. coverage only for a specified disease or illness; and 3
102	102
103	103	2. hospital indemnity or other fixed indemnity insurance, if 4
104	104	the [benefits are payable in a fixed dollar amount per period of time, regardless of the 5
105	105	amount of expenses incurred] COVERAGE QUALIFIES F OR THE EXCEPTION DES CRIBED 6
106	106	IN 45 C.F.R. § 146.145(B)(4); or 7
107	107
108	108	31–101. 8
109	109
110	110	(a) In this subtitle the following words have the meanings indicated. 9
111	111
112	112	(g) (4) “Health benefit plan” does not include the following benefits if the 10
113	113	benefits are provided under a separate policy, certificate, or contract of insurance, there is 11
114	114	no coordination between the provision of the benefits and any exclusion of benefits under 12
115	115	any group health plan maintained by the same plan sponsor, and the benefits are paid with 13
116	116	respect to an event without regard to whether the benefits are provided under any group 14
117	117	health plan maintained by the same plan sponsor: 15
118	118
119	119	(i) coverage only for a specified disease or illness; OR 16
120	120
121	121	(ii) [group] hospital indemnity or other fixed indemnity insurance, 17
122	122	if the [benefits are payable in a fixed dollar amount per period of time, such as $100 per 18
123	123	day of hospitalization, regardless of the amount of expenses incurred; or 19
124	124
125	125	(iii) individual hospital indemnity or other fixed indemnity 20
126	126	insurance, if: 21
127	127
128	128	1. the benefits are paid in a fixed dollar amount per period of 22
129	129	hospitalization, illness, or service, regardless of the amount of expenses incurred and of the 23
130	130	amount of benefits provided with respect to the event or service under any other health 24
131	131	coverage; and 25
132	132
133	133	2. a notice is displayed prominently in the application 26
134	134	materials, in at least 14 point type, that has the following language in capital letters: “This 27
135	135	is a supplement to health insurance and is not a substitute for major medical coverage. 28
136	136	Lack of major medical coverage (or other minimum essential coverage) may result in an 29
137	137	additional payment with your taxes.”] COVERAGE QUALIFIES F OR THE EXCEPTION 30
138	138	DESCRIBED IN 45 C.F.R. § 146.145(B)(4) AND 45 C.F.R. § 148.220(B)(4). 31
139	139
140	140	SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 32
141	141	October 1, 2025. 33