Acting commissioner asks committee to hold House Bill 116 amid federal regulation uncertainty
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Summary
Acting Commissioner Marie Grant told the Health and Government Operations Committee that House Bill 116, which would align Maryland notice requirements for hospital indemnity coverage with a recent federal regulation, should be considered with amendments or delay after a federal court ruling cast doubt on that regulation.
House Bill 116 — a departmental bill to align Maryland's health insurance notice rules with a recent federal regulation for hospital indemnity coverage — drew a request for more time from Acting Commissioner Marie Grant during a Health and Government Operations Committee hearing.
Grant said Maryland law already contains strong notice protections and that a recent lower-court ruling has called the federal regulation underlying HB 116 into question. She asked the committee to allow the department time to consult with the Attorney General's Office and to consider amendments rather than move hastily to adopt the federal language.
Why it matters: HB 116 would tie state notice requirements for limited "hospital indemnity" products — not major medical coverage — to updated federal guidance. Grant told the committee the bill's substantive changes are intended to align state and federal definitions and notice requirements but cautioned that the federal rule has been the subject of litigation since the bill was filed.
In committee, Grant said the department is working with the Attorney General's Office, which submitted a letter of concern in the bill file, and recommended a "favorable with amendments" posture while discussions continue. Vice Chair Collison asked whether the committee could proceed now or wait for the federal court process; Grant replied the department preferred time to reconcile Maryland's existing protections with the newly promulgated federal requirements.
No formal action was taken during the hearing. Committee staff confirmed the Attorney General's letter has been received and the department remains in communication with the office.
The hearing on HB 116 concluded after departmental testimony and a brief round of questions.
Provenance: Testimony introducing HB 116 began at the committee's announcement of the bill order and the department's remarks (transcript blocks starting at 170.04 and Marie Grant's remarks beginning at 236.81). The department's final remarks on the bill and closure of the hearing occurred at the committee's statement that the bill hearing had concluded (block beginning 435.87).