MACo joined the Maryland Municipal League and the Local Government Insurance Trust to request the Governor’s veto of a bill recently passed by the Maryland General Assembly.

HB 552/SB 703, Health Insurance – Medical Stop-Loss Insurance – Small Employers, makes several changes to laws regulating the medical self-insurance market. In part, the bill increases the minimum attachment point for medical stop-loss insurance policies, creating potential cost increases for small businesses and small local governments who self-insure.

MACo opposed the legislation, noting its unnecessary application to local government and its negative effect on the Maryland Local Government Health Cooperative, advocating for a local government exemption. While the final version of the bill included amendments protecting all existing members of the Cooperative from cost increases, MACo and MML continued to oppose the legislation and are now urging the Governor’s veto.

As described in the letter sent by MACo and MML, among the concerns with this legislation is the effect it will have on the Maryland Local Government Health Cooperative,

In particular, House Bill 552 – Health Insurance – Medical Stop-Loss Insurance – Small Employers will have a detrimental impact on the Maryland Local Government Health Cooperative, an insurance pool that allows small counties and towns to self-insure their health insurance. Through the Cooperative, counties and towns provide effective health coverage for employees while realizing lower employer premiums. We are seeking to grow this pool to extend its benefits to more members and increase its health and viability.

For more information, read the full letter and our previous posts on Conduit Street, Senate Concurs with Bill Restricting Medical Stop-loss Insurance Market, Bill Could Raise County Government, Small Business Health Insurance Costs.