Medical Stop-Loss Legislation Becomes Maryland Law

A bill that could increase health insurance costs for small businesses and small governments that self-insure has now become law without the Governor’s signature. The Governor had the option of signing or vetoing the bill, but since he did neither, it has taken effect without his signature under Article II, Section 17(c) of the Maryland Constitution

HB 552 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 specific attachment point for medical stop-loss insurance policies from $10,000 to $22,500 and the minimum aggregate attachment point from 115% to 120%.

MACo opposed the bill’s restriction of local options for county governments providing health insurance for their own employees. As a result of advocacy on the part of small businesses and MACo, the minimum attachment points in the initial bill draft were reduced, and grandfathering provisions were added.

For more background, read our article, MACo, MML Request Veto of Bill Restricting Medical Insurance Market.