Bill > HB116

This bill modifies the definition of "health benefit plan" in Maryland insurance law by updating the provisions related to hospital indemnity and fixed indemnity insurance. Specifically, the bill replaces detailed existing language about when these types of insurance are excluded from the definition of a health benefit plan with a simplified reference to federal regulations (45 C.F.R. § 146.145(B)(4) and 45 C.F.R. § 148.220(B)(4)). The current law had specific requirements about how these insurance policies could be offered, such as being paid in fixed dollar amounts, having no coordination with other health plans, and including specific warning language in application materials. The new bill streamlines these requirements by deferring to federal regulatory standards for when such insurance policies can be considered separate from comprehensive health benefit plans. This change affects multiple sections of Maryland's insurance code and is set to take effect on October 1, 2025, which will provide insurers and regulators time to adjust to the new standard.

Health and Social Services

Health and Government Operations (House)

https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/HB0116?ys=2025RS