EXPLANATION: CAPITALS INDICATE MATTER ADDE D TO EXISTING LAW .
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*sb0547*
SENATE BILL 547
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By: Senator James Senators James, Beidle, Ellis, Gile, Hayes, Hershey,
C. Jackson, Kramer, Lam, Mautz, Ready, and A. Washington
Introduced and read first time: January 23, 2025
Assigned to: Finance
Committee Report: Favorable with amendments
Senate action: Adopted
Read second time: February 11, 2025
CHAPTER ______
AN ACT concerning 1
Commission to Study Health Insurance Pooling – Establishment 2
FOR the purpose of establishing the Commission to Study Health Insurance Pooling to 3
study the pooling of public employee health insurance purchasing between the State, 4
counties, municipal corporations, and county boards of education in the State to 5
maximize value and efficiency while maintaining a broad package of benefits and 6
reasonable premiums for public employees; and generally relating to the Commission 7
to Study Health Insurance Pooling. 8
Preamble 9
WHEREAS, The State perpetually faces fiscal constraints; and 10
WHEREAS, The State traditionally addresses fiscal constraints by cutting 11
expenditures or raising taxes, fees, and surcharges; and 12
WHEREAS, Identifying efficiencies in health insurance purchasing can both save 13
money and improve coverage for the State and State employees; and 14
WHEREAS, Currently the State, counties, municipal corporations, and county 15
boards of education tend to purchase health insurance without pooling purchasing; and 16
WHEREAS, Given the immense expense of health insurance benefits, even a small 17
percentage of savings would translate to significant dollar amounts; and 18 2 SENATE BILL 547
WHEREAS, Being part of a larger health insurance risk pool generally provides 1
more cost–effective coverage to members; and 2
WHEREAS, Several states have demonstrated that health insurance pooling for 3
public employees is effective at lowering health insurance costs; and 4
WHEREAS, The General Assembly passed House Bill 1400 of 2018 unanimously and 5
the Governor signed it into law, but its provisions have been underutilized; now, therefore, 6
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 7
That: 8
(a) There is a Commission to Study Health Insurance Pooling. 9
(b) The Commission consists of the following members: 10
(1) one member of the Senate of Maryland who serves on the Senate 11
Budget and Taxation Committee, appointed by the President of the Senate; 12
(2) one member of the House of Delegates who serves on the House 13
Appropriations Committee, appointed by the Speaker of the House; 14
(3) one member of the House of Delegates who serves on the House Ways 15
and Means Committee, appointed by the Speaker of the House; 16
(4) the Secretary of Budget and Management, or the Secretary’s designee; 17
(5) the Comptroller, or the Comptroller’s designee; 18
(6) the Maryland Insurance Commissioner, or the Commissioner’s 19
designee; 20
(7) the State Treasurer, or the State Treasurer’s designee; 21
(8) the Procurement Advisor to the Board of Public Works, or the 22
Procurement Advisor’s designee; 23
(9) (8) one representative of the Maryland Public Purchasing 24
Association, designated by the President of the Maryland Public Purchasing Association; 25
(10) (9) one representative of the Maryland Association of Counties, 26
designated by the Executive Director of the Maryland Association of Counties; 27
(11) (10) one representative of the Maryland Municipal League, 28
designated by the Chief Executive Officer of the Maryland Municipal League; 29
SENATE BILL 547 3
(12) (11) one representative of the Maryland Association of Boards of 1
Education, designated by the President of the Maryland Association of Boards of Education; 2
(13) (12) one representative of the Maryland State Education Association, 3
designated by the President of the Maryland State Education Association; 4
(14) (13) one representative of the American Federation of State, County, 5
and Municipal Employees, designated by the President of the American Federation of 6
State, County, and Municipal Employees Maryland Council 3; 7
(15) (14) one representative of the Service Employees International 8
Union, designated by the President of the Service Employees International Union 9
Maryland/D.C. Division; 10
(16) (15) one representative of the American Federation of Labor and 11
Congress of Industrial Organizations, designated by the President of the Maryland State 12
and D.C. American Federation of Labor and Congress of Industrial Organizations; 13
(17) (16) one representative of the American Federation of Teachers, 14
designated by the President of the American Federation of Teachers–Maryland; and 15
(18) (17) the following members, appointed by the Governor: 16
(i) four additional representatives of labor unions in the State, 17
including unions representing law enforcement and firefighters; 18
(ii) one individual who is an insurance agent in the State; and 19
(iii) four individuals with interest or experience in health care 20
advocacy or fiscal responsibility and efficiency in the State, who may be representatives of 21
advocacy organizations or research institutes. 22
(c) The Secretary of Budget and Management shall serve as the chair of the 23
Commission. 24
(d) The Department of Budget and Management shall provide staff for the 25
Commission. 26
(e) A member of the Commission: 27
(1) may not receive compensation as a member of the Commission; but 28
(2) is entitled to reimbursement for expenses under the Standard State 29
Travel Regulations, as provided in the State budget. 30
(f) The Commission may contract with external organizations to provide data 31
analysis necessary to fulfill the Commission’s duties under subsection (g). 32 4 SENATE BILL 547
(g) The Commission shall: 1
(1) study pooling public employee health insurance purchasing between 2
the State, counties, municipal corporations, and county boards of education using data 3
collected by the Department of Budget and Management, including information provided 4
by the Maryland Association of Counties, the Maryland Municipal League, and the 5
Maryland Association of Boards of Education regarding health insurance benefits offered 6
to public employees by the constituent entities; 7
(2) based on the data collected under item (1) of this subsection, analyze 8
the impacts of pooling public employee health insurance purchasing between the State, 9
counties, municipal corporations, and county boards of education on the State, including 10
the fiscal impacts, and identify any barriers to achieving the successful implementation of 11
pooling public employee health insurance purchasing in the State; and 12
(3) make legislative or regulatory recommendations regarding pooling 13
public employee health insurance purchasing between the State, counties, municipal 14
corporations, and county boards of education in the State to maximize value and efficiency 15
while maintaining a broad package of benefits and reasonable premiums for public 16
employees. 17
(h) On or before December 1, 2026, the Commission shall report its findings and 18
recommendations to the Governor and, in accordance with § 2 –1257 of the State 19
Government Article, the General Assembly. 20
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 21
1, 2025. It shall remain effective for a period of 2 years and, at the end of June 30, 2027, 22
this Act, with no further action required by the General Assembly, shall be abrogated and 23
of no further force and effect. 24
Approved:
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Governor.
________________________________________________________________________________
President of the Senate.
________________________________________________________________________________
Speaker of the House of Delegates.