MD HB1439

Exempts health benefit plans issued through professional employer organizations (PEOs) from Maryland's small employer health benefit plan requirements, including the mandate to offer qualified health plans through the Small Business Health Options Program (SHOP) Exchange

Defines "professional employer organization" as a business entity that contractually allocates employer responsibilities with another business for at least half of that business's worksite employees

Excludes temporary staffing agencies from the PEO definition—specifically entities that recruit their own employees and assign them to clients on a temporary basis for situations like employee absences or seasonal workloads

Removes PEOs and coemployers from the definition of "health benefit plan" under current small employer insurance regulations, allowing them to operate outside those requirements

Takes effect January 1, 2026, applying to all policies, contracts, and health benefit plans issued, delivered, or renewed on or after that date