BIPARTISANSHIP ALERT: Hogan Administration Collaborates With Legislature To Stabilize Insurance Rates And Prevent Massive Increases

Legislation Will Stabilize Health Insurance Markets In Maryland

“Very simply, it seems that neither political party in Washington, Republicans or Democrats,have the will or the ability to fix these problems, but our state will address them head-on. These issues are much too important, and the impact is too far-reaching for us to risk getting it wrong.” - Governor Larry Hogan, January 25, 2018

Maryland Health Care Access Act Of 2018

The Hogan Administration Worked With Members Of The General Assembly To Establish The Health Care Access Program To Provide Reinsurance To Carriers That Issue Health Benefit Plans In The Individual Market In The State. “The Fund may be used only:... for the establishment and operation of the Health Care Access Program authorized under § 31-117.1 of this title... The Exchange shall establish and oversee the implementation of a Health Care Access Program in accordance with § 1332 of the Affordable Care Act. The Health Care Access Program shall be designed to mitigate the impact of high-risk individuals on rates for health benefit plans in the individual market in the State. Both inside and outside the Exchange. Beginning January 1, 2019, the Health Care Access Program shall provide: reinsurance to carriers that issue health benefit plans in the individual market in the State; and premium subsidies to low-to moderate-income individuals as authorized under a waiver approved under § 1332 of the Affordable Care Act.” (“Senate Bill 387,” Maryland General Assembly, 1/25/18)

Bipartisan Legislation Receives Strong Support

Members Of The Maryland Senate Voted 42-5 On Third Reading, To Approve Senate Bill 387. (“Senate Bill 387,”Maryland General Assembly, 3/19/18)

Members Of The Maryland House Of Delegates Voted 91-47 On Third Reading, To Approve House Bill 1782. (“House Bill 1782,” Maryland General Assembly, 3/19/18)

Maryland Health Benefit Exchange - Establishment Of A Reinsurance Program

The Hogan Administration Worked With Members Of The General Assembly To Propose, Bipartisan Legislation To Stabilize Insurance Markets; Legislation Authorizes A State Reinsurance Program. “The Exchange shall establish a State Reinsurance Program to provide reinsurance to carriers that offer individual health benefit plants in the State. The State Reinsurance Program shall be designed to mitigate the impact of high-risk individuals on rates in the individual insurance market inside and outside the Exchange.” (“House Bill 1795,” Maryland General Assembly, 3/2/18) 

This Legislation Allows Maryland To Apply To The Federal Government’s Centers For Medicaid And Medicare Innovation For A 1332 State Innovation Waiver Of The Affordable Care Act; Waiver Allows Maryland To Access Federal Pass-Through Funding To Implement A Reinsurance Program Or To Use Federal Reinsurance Funds Should They Become Available Through Congressional Action. “Beginning January 1, 2019, if required under the terms and conditions of receiving federal funds, State funding for reinsurance in the individual market through the State Reinsurance Program shall be contingent on the Centers for Medicare and Medicaid Services’ approving a waiver under § 1332 of the Affordable Care Act. The Exchange shall adopt regulations implementing the provisions of this section. 31-117.1.” (“House Bill 1795,” Maryland General Assembly, 3/2/18)

Bipartisan Legislation Receives Strong Support

Members Of The Maryland Senate Voted 43-4, On Third Reading, To Approve Senate Bill 1267. (“Senate Bill 1267,” Maryland General Assembly, 3/19/18)

Members Of The Maryland House Of Delegates Voted Unanimously 135-0, On Third Reading, To Approve House Bill 1795. (“House Bill 1795,” Maryland General Assembly, 3/15/18)


Proposed Legislation Is The Result Of Bipartisan Action Taken By The General Assembly And The Governor’s Negotiation Task Force

In January 2018, Governor Hogan Announced The Formation Of A Negotiation Task Force To Develop Solutions With Members Of The General Assembly To Stabilize Insurance Markets And Protect Maryland’s Medicare Waiver. “The governor also called on the legislature to work with his negotiation task force on another critical issue facing the state as a result of actions – or inaction – in Washington: the impending massive increases in health insurance rates of 50 percent or more due to Congress’ inability to fix federal health care laws. Rates, which have been increasing for Marylanders for nearly a decade as a direct result of changes to federal health care laws, are set to skyrocket due to dysfunction and gridlock preventing Washington policymakers from developing solutions. The governor directed his task force to collaborate with legislative leaders to develop common sense, bipartisan solutions to stabilize the insurance markets and protect Maryland’s Medicare waiver. Failure to do so would jeopardize health care coverage for thousands of Marylanders, along with $2 billion annually for the state.” (Press Release, “Governor Larry Hogan Announces Actions To Protect Marylanders From Federal Policy Changes,” Office Of The Governor, 1/25/18)

The Governor Has Consistently Called For Bipartisan Solutions To Health Care

Governor Hogan, Senate President Miller, And Speaker Busch Urged Maryland’s Congressional Delegation And Their Colleagues To Take Action “To Create More Predictability In The National Health Insurance Markets,” Noted Unsustainable, Rising Premium Increases. “As the leaders of Maryland state government, we write to urge you and your colleagues to take action to create more predictability in the national health insurance markets. We have one of the best healthcare delivery systems in the country and only 6% of our citizens do not have health insurance. However, recent federal actions, in particular the elimination of cost-sharing reduction payments, have resulted in premium increases on the Maryland individual market that are unsustainable. Calendar 2018 premium rates increased by up to 52% for some insurers.” (Letter, Governor Larry Hogan, Senate President Thomas V. “Mike” Miller, House Of Delegates Speaker Michael E. Busch Re: Predictability In Health Insurance Markets, 3/7/18)

Governor Hogan: We're going to have to work together in a bipartisan way with governments all around the country and both houses of the federal (government) with input from the governors in the states and come up with a compromise solution that gets rid of some of the problems and fixes the issues while still protecting as many people as we can,’ Hogan said.” (“Hogan Says Health Care Proposal Has Long Way To Go,” The Associated Press, 3/8/17)