Bill Positions

Bill Number: SB 107

Bill Title: Health Benefit Exchanges - Establishment and Operation

Bill Sponsor(s): Sen. Astle

Subject: Health

Committee: FIN

Bill Summary: This bill would have required that a state health benefit exchange be established as a nonprofit entity and only perform functions and services that directly relate to functions established under the federal health care law. The exchange would have been prohibited from soliciting business from individuals and small employers that already participate in the individual or small group markets outside of the exchange. Exchange employees who solicit or sell health insurance would have been required to be licensed as insurance producers., and funding of the exchange would have been borne by exchange participants.

History: The Patient Protection and Affordable Care Act of 2010 requires each state to establish a health benefit exchange to facilitate enrollment in health plans and provide for the use of federal health insurance subsidies. Such exchanges must be operational by January 1, 2014. SB 107 of 2011 received an unfavorable report from the Finance Committee.

Chamber Position: Support

Position Summary: It is important that the state health benefit exchange compliment the private health insurance market and not engage in unfair competition. Therefore, it is appropriate to put reasonable protections in place to ensure that the exchange focuses its efforts on expanding access to health benefits, using qualified advisors, and recovering costs from its participants.

Position Statement: Click here

Chamber Staff: Ronald Wineholt

General Assembly: Click here to view the bill on the Maryland General Assembly's website.