Wednesday, April 01, 2009
Small Group Reform Passes Both Houses
Both houses of the Maryland General Assembly have unanimously passed legislation to introduce market-based reforms into the Small Group Health Insurance Plan (SB 637/HB 674). There are slight differences, but the Chamber is hopeful the two houses will be able to iron them out. The Maryland Chamber supports this legislation, which would:
- Require the Maryland Health Care Commission to maintain health insurance price comparisons on their website for small employers;
- Allow for preexisting condition exclusions in the program, to encourage persons to obtain insurance before they get an illness;
- Widen the plan’s rating bands to provide less subsidy from young groups to older groups. The Senate bill goes a bit further than the House bill and would widen the bands in two steps (July 2010 and July 2012); and
- Allow a 3-year reduction or surcharge to rates based on employee health status for businesses that first enter the Small Group Plan.
The Maryland Chamber believes this legislation will encourage more young and healthy groups to enter the Small Group Plan and help to stabilize the rates for participating businesses. Contact Ron Wineholt for further information at .(JavaScript must be enabled to view this email address).
so what does that do for a small group employer who has alway provided health insurance for its employees?