Bill > SB956

This bill requires insurance carriers to pay the same commission rates to insurance producers (brokers) for Medicare supplement policies, regardless of how those policies are sold. Specifically, the bill mandates that carriers provide identical commission rates for policies sold during an open enrollment period, as an underwritten policy, or under certain guaranteed issue conditions (referring to Section 15-909(B)(6) of Maryland insurance law). The legislation applies to Medicare supplement policies issued to individuals at least 65 years old or under specific guaranteed issue circumstances. The key change is eliminating any variation in commission rates based on the type of policy or enrollment period, which could potentially provide more consistent compensation for insurance producers and remove potential financial disincentives for selling certain types of Medicare supplement policies. The bill is set to take effect on October 1, 2025, giving insurance carriers time to adjust their commission structures to comply with the new requirement.

Budget and Finance, Health and Social Services

https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/SB0956?ys=2025RS