Bill > H2890

This bill introduces new transparency requirements for municipal health insurance procurement by defining and regulating the roles of brokers and consultants in the process. Specifically, the bill defines a "broker" as a licensed professional who helps public authorities place insurance plans with carriers, and a "consultant" as a licensed advisor who provides technical expertise about benefit purchases. The legislation permits public authorities, governmental units, and employers to contract with consultants for services such as reviewing annual insurance renewals, advising on insurance plan structures, tracking claims and premium experiences, completing Requests for Proposals (RFPs) for various benefit plans, conducting compliance audits, and educating committee members. Contracts with consultants must clearly explain fees and payment schedules. Similarly, brokers must disclose their commission rates when placing insurance plans. Importantly, the bill prohibits a consultant from simultaneously acting as a broker for the same public authority or governmental unit, which aims to prevent potential conflicts of interest and ensure more transparent and independent insurance procurement processes.

Labor and Employment

https://malegislature.gov/Bills/194/H2890