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Committee hears data showing Maryland young‑adult subsidy increased enrollment and lowered premiums; sponsors seek permanent reauthorization
Summary
Officials and advocates told the committee that the Maryland Health Benefit Exchange young‑adult subsidy pilot continues to enroll younger adults, eased premiums and boosted equity; Exchange officials recommended removing the sunset and keeping the program funded from the existing reinsurance assessment rather than general funds.
Delegate Kerr presented House Bill 297 to repeal the sunset on Maryland’s Young Adult Health Insurance Subsidies Pilot Program and make the subsidy ongoing while funding remains available through the state’s reinsurance assessment.
Michelle Eberly, executive director of the Maryland Health Benefit Exchange, said the program enrolled nearly 65,000 people ages roughly 18–37, produced average monthly savings of about $38 per enrollee (cited as 30 percent), and increased year‑over‑year enrollment in the age group by 21 percent compared with 16 percent overall. Eberly said the young‑adult cohort now represents 36 percent of the exchange’s enrollees and that increased participation among younger adults has exerted downward pressure on premiums (Exchange estimate: about a 1.2 percent premium reduction).
Eberly told members the subsidy is funded from the reinsurance assessment (a 1 percent carrier assessment described in testimony) and does not require general fund dollars. She said approximately half the cost of the subsidy is offset through federal reinsurance funding, and that unspent reinsurance dollars have been rolled forward to expand the program in some years.
Parents and advocates testified that the subsidy made coverage affordable for young adults working for small employers and gig workers who otherwise had priced‑out options or high deductibles. Witnesses said the program preserved continuity of care—keeping some young adults with the same doctors—and improved affordability for families.
Committee members asked technical questions about the makeup of the 1 percent assessment on carriers and whether the program will require general funds in future years; Eberly said the assessment is calculated from carrier contributions (ballpark $150 million a year cited) and that the program has not required general fund support.
Ending: Advocates and the Exchange pushed for repeal of the pilot’s sunset. The hearing record included enrollment, utilization and equity figures from the Exchange and continued fiscal questions from lawmakers; no final committee vote is recorded in the transcript.
