MD SB779

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

PEOs are defined as business entities that enter into contractual agreements to allocate employer responsibilities for all or at least half of another business's 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 small employer, and the employer's right to terminate the agreement within 60 days of written notice.

Welfare benefit plans offered to worksite employees of PEOs shall be treated as single employer welfare benefit plans rather than multiple employer arrangements.

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