Bill > HB1439

This bill modifies Maryland's insurance laws to change how health benefit plans are regulated for small businesses, particularly those working with professional employer organizations (PEOs). A PEO is a business entity that enters into agreements with other businesses to share employer responsibilities for at least half of the worksite employees. The bill specifically exempts health benefit plans issued through PEOs from certain state requirements that normally apply to small employer health plans. Key changes include removing previous language that allowed PEOs and similar organizations to be included in the definition of health benefit plans, and creating a new definition that narrowly defines PEOs to exclude temporary staffing agencies and other types of employment services. The bill also removes provisions that previously allowed entities leasing employees to be treated as small employers, instead mandating that welfare benefit plans for PEO worksite employees be treated as single employer welfare benefit plans. These changes will apply to all health insurance policies, contracts, and benefit plans issued, delivered, or renewed in Maryland on or after January 1, 2026, with the aim of providing more clarity and potentially more flexibility for small businesses in obtaining health insurance through professional employer organizations.

Health and Social Services

https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/HB1439?ys=2025RS