CHAPTER 671
(House Bill 918)

AN ACT concerning

Health Benefit Plans - Small Employers - Rates

FOR the purpose of authorizing certain carriers to charge a rate for a health benefit
plan issued to a small employer that is a certain increasing the percentage above
or below a certain community rate that certain carriers may charge for a health
benefit plan issued to a small employer; repealing a requirement that the
Insurance Commissioner, in conjunction with the Health Care Access and Cost
Commission, submit a certain report to the Governor and the General Assembly
on or before a certain date; and generally relating to health benefit plans and
small employers.

BY repealing and reenacting, with amendments,
Article - Insurance
Section 15-1205
Annotated Code of Maryland
(1997 Volume and 1998 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

Article - Insurance

15-1205.

(a) (1) In establishing a community rate for a health benefit plan, a carrier
shall use a rating methodology that is based on the experience of all risks covered by
that health benefit plan without regard to health status or occupation or any other
factor not specifically authorized under this subsection.

(2) A carrier may adjust the community rate only for:

(i) age; and

(ii) geography based on the following contiguous areas of the State:

1. the Baltimore metropolitan area;

2. the District of Columbia metropolitan area;

3. Western Maryland; and

4. Eastern and Southern Maryland.

(3) Rates for a health benefit plan may vary based on family composition
as approved by the Commissioner.