Bill Positions

Bill Number: SB 637

Bill Title: Health Insurance - Small Group Market Regulation - Modifications

Bill Sponsor(s): Sen. Garagiola, et al.

Subject: Health

Committee: FIN

Bill Summary: This bill will make several changes to the small group health insurance plan. Effective October 1, 2009 the bill: (1) Requires the MD Health Care Commission to maintain on its website data that small employers may use to compare premiums offered by small group carriers; and (2) Allows carriers to impose preexisting condition limitations for individuals to the same extent as larger group insurance policies. Effective July 1, 2010 the bill: (1) Expands the permissible range of rates to +/- 50% from the community rate; and (2) Allows a limited adjustment based on health status for the first 3 years that an employer joins the small group plan if they have not offered a health benefit in the prior 12 months.

History: SB 637 was enacted as Chapter 577.

Chamber Position: Support

Position Summary: The MD Chamber recognizes in its 2009 Business Agenda that market-based reforms are necessary to attract additional participants to the small group health insurance plan. We support steps such as broadening the rating bands, incorporating rating factors that will encourage cost containment, and attracting low risk participants to the small group pool.

Position Statement: Click here (pdf)

Chamber Staff: Ronald Wineholt

General Assembly: Click here to view the bill on the Maryland General Assembly's website.