February 8, 2010
The Honorable Peter A. Hammen
Health and Government Operations Committee
Room 241, House Office Building
Annapolis, MD 21401-1912
Dear Delegate Hammen:
HB32 would repeal the option for the Maryland Health Care Commission to adjust cost-sharing arrangements in the Comprehensive Standard Health Benefit Plan if the average rate for the Standard Plan exceeds a specified percentage of the average annual wage in the State.
The Legislative Committee of the Carroll County Chamber of Commerce opposes this bill. Under current law, MHCC can reduce benefits or increase cost sharing to stay under the ceiling. However, under the bill, MHCC will no longer have the authority to increase cost sharing. Thus, if the cost of the Comprehensive Standard Health Benefit Plan approaches the ceiling, MHCC will have to reduce benefits. This may lead businesses to buy riders to expand covered services, which may be more expensive than riders that lower cost sharing arrangements.
We therefore ask that your committee give this bill a negative report.
Sincerely,
Richard Haddad
President
CC: Senator Larry E. Haines