Bill Positions

Bill Number: SB 813

Bill Title: Health Care Affordability Act of 2009

Bill Sponsor(s): Sen. Jones

Subject: Health

Committee: FIN

Bill Summary: This bill would have abolished MHIP and established a MD Health Insurance Pool, which would have been the sole mechanism for carriers to provide health insurance policies to individuals without access to employer-sponsored coverage and employers with 2-100 full time employees, effective 1/1/11. The Pool plans would have been guaranteed issue and renewal, community-rated, exclude preexisting condition limitations, and prohibited medical underwriting. Premiums would have been subsidized for persons under 400% FPL, and there would have been an individual mandate to buy health insurance for persons over 500% FPL. There would have been a high risk reinsurance plan. All employers would have been subject to a 2% payroll assessment on the FICA wage base of all employees in MD effective 7/1/09, subject to a compliance penalty of $250,000. Cigarette and alcoholic beverage taxes would also have been increased.

History: The Chamber has opposed many bills in recent years that would impose a payroll tax on employers to fund a universal health care program. In 2009 SB 813 died without a vote in the Finance Committee.

Chamber Position: Oppose

Position Summary: The MD Chamber continues to oppose universal health care plans that would be funded by by mandated employer assessments. This proposal would have been 85% paid for by an annual $2.5 billion payroll assessment on all employers. While the payroll assessment would have been a crippling reality, any proposed savings could have proven illusory. Such a new financial burden on employers was ill-advised during these difficult economic times.

Position Statement: Click here (pdf)

Chamber Staff: Ronald Wineholt

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