Income Tax – Decoupling From Federal Changes – Education Expenses
HB0930 establishes Maryland’s Public Health Abortion Grant Program and a dedicated Public Health Abortion Grant Program Fund. The program is designed to provide operating grants to eligible organizations that improve access to abortion care clinical services for individuals in the State, especially those who are uninsured, underinsured, or otherwise unable to use insurance for abortion-related care. The bill also requires the Department of Health to develop grant standards, award at least 90% of appropriated program funds as grants, and protect identifying information about grant applicants, providers, and individuals receiving support.
The bill also amends Maryland insurance law to direct certain premium funds collected for abortion coverage under the Affordable Care Act’s Section 1303 framework. If a segregated account for abortion coverage has excess balances after specified periods, 90% of the excess must be transferred to the new grant fund, with reporting and accounting requirements imposed on carriers and oversight authority given to the Insurance Commissioner. The bill further requires an initial $2 million allocation by October 1, 2025, and a continuing budget appropriation beginning in fiscal year 2027 tied to the amount required to be transferred under the insurance provisions.
The bill adds a new subtitle to the Health-General Article, creates a new special, nonlapsing fund in the State Finance and Procurement Article, and adds a new insurance provision governing how abortion-coverage premium funds are handled. It affects insurers, nonprofit health service plans, and health maintenance organizations that issue or deliver coverage in Maryland, as well as the Maryland Insurance Administration, the Department of Health, and eligible abortion-care organizations. The act also exempts the new fund from the State’s general interest-allocation rule and includes a federal preemption/abrogation clause if CMS determines the insurance provisions violate federal ACA Section 1303 requirements.
The bill’s structure suggests strong support for expanding abortion access through public funding and insurance-related transfers, with a clear emphasis on confidentiality and operational support for providers. Because no committee transcript or vote record was provided, there is no documented floor or committee debate in the supplied materials. The enacted law indicates the measure ultimately advanced successfully and was approved by the Governor.
The main points of potential contention are the use of premium funds associated with abortion coverage, the transfer of excess balances from segregated insurance accounts into a state grant program, and the requirement that the State budget support the fund in future years. Opponents could object to the bill’s use of insurance-related funds for abortion access, while supporters would likely emphasize equitable access, provider support, and confidentiality protections for patients and staff. The federal contingency clause also signals concern that the insurance provisions must remain consistent with ACA Section 1303 and related federal restrictions.