MD HB1472

Health benefit plans issued through professional employer organizations (PEOs) located in Maryland would be exempt from certain small employer health plan requirements, including the mandate to offer qualified health plans through the Small Business Health Options Program (SHOP) Exchange.

PEOs are defined as business entities that enter contractual agreements with other businesses to allocate employer responsibilities for all or at least half of the worksite employees; temporary staffing agencies are explicitly excluded from this definition.

PEOs providing health benefit plans to small employers must disclose in writing: detailed benefit information, any additional costs to the employer, and the employer's right to terminate the agreement within 60 days of written notice.

Welfare benefit plans offered to worksite employees of a PEO would be treated as a single employer welfare benefit plan for regulatory purposes.

The act takes effect January 1, 2027 and applies to all policies, contracts, and health benefit plans issued, delivered, or renewed in Maryland on or after that date.