Bill > SB760

This bill modifies Maryland's health insurance regulations to exempt health benefit plans issued through professional employer organizations (PEOs) from certain state requirements. A PEO is defined as a business entity that enters into a contractual agreement with another business, sharing employer responsibilities for at least half of the worksite employees, but specifically excluding temporary staffing agencies. The bill clarifies that health benefit plans issued through PEOs are not subject to provisions requiring small employers' health plans to be offered through the Small Business Health Options Program (SHOP) Exchange. The legislation defines a small employer as a business with an average of 50 or fewer employees in the preceding calendar year, and introduces a new provision stating that welfare benefit plans offered to worksite employees of a PEO shall be treated as a single employer welfare benefit plan. The bill will apply to all health insurance policies, contracts, and plans issued, delivered, or renewed in Maryland on or after January 1, 2026, with the act taking effect on that same date. This change aims to provide more flexibility for small businesses in offering health benefits through professional employer organizations.

Budget and Finance

https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/SB0760?ys=2025RS