Maryland Senate Bill SB500

Maryland 2023 Regular Session

• Introduced: 2/3/23
• Refer: 2/3/23

Caption

Health Insurance – Health Benefit Plans Issued Through Professional Employer Organizations – Exemption

Impact

The bill is expected to simplify the operational framework for PEOs, making it easier for them to offer health insurance options without the additional requirement of providing qualified plans through the Maryland Health Benefit Exchange. This change may encourage more organizations to utilize PEOs for their employee benefits, particularly among small businesses that may find the compliance burdens challenging. By reducing these requirements, the bill could promote greater participation in employer-sponsored health insurance plans.

Summary

Senate Bill 500 proposes to exempt health benefit plans offered through professional employer organizations (PEOs) from certain regulatory requirements applicable to health benefit plans in Maryland. Specifically, it aims to relieve PEOs from the requirement to also offer qualified health plans in conjunction with their health benefit plans for small employers. This move is designed to enhance flexibility and accessibility for those employing such arrangements, thereby potentially increasing the competition and availability of health plans in the market.

Contention

While the bill has potential benefits, it has also elicited concerns from various stakeholders regarding the implications for employee protections and the standards of health insurance provided to workers. Opponents argue that this could lead to a decrease in the quality of health insurance options available to employees, especially if PEOs pursue more lenient offerings that do not meet the comprehensive standards typically required. There are ongoing discussions around maintaining adequate safeguards to protect employees' health insurance needs, even as the bill aims to simplify offerings through PEOs.