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MD HB1069

Bill

Status

Passed

5/6/2025

Primary Sponsor

Teresa Woorman

Click for details

Origin

House of Delegates

2025 Regular Session

AI Summary

  • Prohibits insurance carriers from including "discretionary clauses" in health insurance, life insurance, annuity contracts, disability insurance, and HMO contracts sold or delivered in Maryland

  • Discretionary clauses are provisions that reserve sole authority to the carrier to interpret policy terms or establish interpretation/review standards inconsistent with state law

  • Expands the definition of "carrier" to include health maintenance organizations (HMOs) alongside insurers and nonprofit health service plans

  • Applies to all policies, contracts, and health benefit plans issued, delivered, or renewed in Maryland on or after January 1, 2026

  • Takes effect October 1, 2025; approved by Governor Wes Moore on May 6, 2025

Legislative Description

Life and Health Insurance Policies and Annuity and Health Maintenance Organization Contracts - Discretionary Clauses - Prohibition

Insurance

Last Action

Approved by the Governor - Chapter 396

5/6/2025

Committee Referrals

Finance3/12/2025
Health and Government Operations2/5/2025

Full Bill Text

No bill text available