HMOs Amended Out of Assignment of Benefits Legislation

As introduced,  SB 314 would have authorized an insured individual to assign his or her benefit to a non-preferred provider, effectively allowing the non-preferred provider to bill the insurance carrier directly.  MACo expressed concern because this practice could have the unintended consequences of increasing administrative fees and eroding network discounts, especially for Health Management Organizations (HMO).   Many counties offer HMOs to keep costs down.

The Maryland Insurance Administration offered and the Senate Finance Committee adopted an amendment to strike HMOs from the bill, effectively addressing MACo’s concern.

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