Montgomery County Public Schools - Local Food Procurement MC 7-26
HB0936 amends Maryland insurance law governing cancellation and nonrenewal notices for small group market health benefit plans. When a carrier cancels or does not renew coverage, the bill requires the carrier to send notice to each enrolled employee within seven days by certified mail, return receipt requested, and also by electronic means that complies with existing electronic notice requirements. The notice must also explain additional coverage options, including COBRA continuation coverage if available and plans available through the Maryland Health Benefit Exchange.
The bill also reinforces existing requirements when a carrier decides not to renew a particular product for all small employers in the State. In that situation, the carrier must give at least 90 days' notice to affected small employers, enrolled employees, and the Insurance Commissioner; offer affected small employers the option to purchase other small-group plans the carrier still offers; and act uniformly without regard to claims experience or health-status factors. The act applies to policies and health benefit plans issued, delivered, or renewed on or after January 1, 2026.
HB0936 updates Section 15-1212 of the Insurance Article and changes the notice obligations for carriers that cancel or nonrenew small group market health benefit plans. It adds a mandatory electronic notice requirement alongside certified-mail written notice and requires the notice to include information about COBRA and Maryland Health Benefit Exchange coverage options. The bill affects health insurers, small employers, and enrolled employees in the small-group market, while leaving the broader structure of nonrenewal protections in place.
The available record suggests the bill was noncontroversial and broadly accepted. There are no committee transcripts or recorded votes showing opposition, and the Senate passed the measure on third reading 42-0 with amendments. That vote pattern indicates strong bipartisan support or at least no visible resistance to the bill’s consumer-notice requirements.
No specific points of contention are documented in the provided materials. The main policy choice in the bill is whether carriers should be required to provide notice by both certified mail and electronic means and to include more detailed information about alternative coverage. Any potential concerns would likely center on administrative burden for carriers versus improved notice and continuity-of-coverage information for employees, but no speaker or vote record in the materials identifies an active dispute.