Tuesday, February 08, 2011
Maryland Lawmakers to Consider Health Benefit Exchange
Maryland lawmakers will hear legislation next week to establish the Maryland Health Benefit Exchange. The federal health care law enacted last year requires states to establish health benefit exchanges to facilitate enrollment in health plans and provide for the use of federal health insurance subsidies.
Governor Martin O’Malley introduced legislation to establish the structure and framework for Maryland’s Exchange (SB 182/HB166). The Exchange would be governed by a nine-member board of trustees that would be granted all powers necessary or convenient to further the purposes of the Exchange.
Maryland Chamber Vice President of Government Affairs Ron Wineholt will provide the chamber’s feedback on the proposal during next week’s hearings. “It’s important that the state Health Benefit Exchange compliment the private health insurance market and not engage in unfair competition,” Wineholt said.
The Chamber would like to see the legislation amended to adopt changes from a bill introduced by Sen. John Astle (D-Dist. 30) (SB 107). That bill would require that the Exchange be a private entity that performs functions that directly relate to the federal law. It would also require the Exchange to focus its efforts on the uninsured, and prohibit it from soliciting business from individuals or employers that are already insured.
Other recommendations that Wineholt will outline in his testimony, include:
Increased Representation for Employers
Employers and consumers will share three seats on the nine-member Exchange board, so employers could have one or two seats. The Maryland Chamber will urge lawmakers to increase employer representation to reflect the fact that employers pay most of the cost of health insurance premiums for most Marylanders.
Study Cost of Additional Benefits
The bill includes language to study and make recommendations regarding what additional benefits should be mandated beyond the federally required essential minimum benefits. Since federal law requires states to fund the cost of benefit mandates that exceed the federal requirements, the Maryland Chamber will encourage lawmakers to amend the bill to require the study to estimate the cost of additional benefit mandates.
Certification of Plans
The bill seems to grant the Exchange sweeping authority to decide which health benefit plans are in the public interest to offer in the Exchange. If a plan is qualified under federal and state law, the Exchange should be required to offer it for sale. The Chamber believes this would maximize competition and minimize political interference against disfavored carriers.
For more information, contact Ron Wineholt at .(JavaScript must be enabled to view this email address).
