Bill > SB779

This bill, the Better Small Business Employee Benefit Act of 2026, aims to provide relief and clarity for small businesses in Maryland regarding health benefit plans. It exempts health benefit plans issued through a professional employer organization (PEO) located in the state from certain requirements that typically apply to small employers offering such plans. A PEO is defined as a business that contracts with another business to share employer responsibilities for their employees. The bill also mandates that PEOs entering into agreements with small employers to provide health benefit plans must clearly disclose specific information in writing to the small business, including details about the benefits offered, any additional costs, and the small employer's right to terminate the agreement within 60 days. Furthermore, it clarifies that a welfare benefit plan offered to a worksite employee of a PEO will be treated as a single employer welfare benefit plan, simplifying how these plans are viewed for regulatory purposes. These changes are set to take effect on January 1, 2027, and will apply to all policies, contracts, and health benefit plans issued, delivered, or renewed in the state on or after that date.