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Legislators Hear Urgent Solvency Warning for Maryland Uninsured Employers Fund
Summary
Analysts and the Maryland Uninsured Employers Fund told the Public Safety and Administration Subcommittee that the fund faces insolvency risks in 2027 unless a combination of collection improvements, assessment changes and administrative reforms proceed.
Delegates and analysts heard that Maryland's Uninsured Employers Fund, which pays medical and other benefits to workers whose employers lack workers'compensation insurance, faces a risk of insolvency as soon as fiscal 2027.
Micah Richards, analyst with the Department of Legislative Services, told the Public Safety and Administration Subcommittee that the fiscal 2026 allowance for the fund rises 1.7% to about $6.1 million but that expenditures exceeded revenues in fiscal 2023 and 2024. "Starting in fiscal 22, the significant increase in administrative costs, which are payments to CorVel, is the primary cause of expenditures exceeding revenues," Richards said during the committee hearing.
Why it matters: UEF pays medical bills and benefits for injured workers when employers lack required coverage. A shortfall would directly affect payments for ongoing claims and could leave injured workers without timely care or compensation.
DLS'recommended changes and flagged multiple proposals from a 2024 joint chairmen''report and work group intended to improve long'term solvency. Recommendations cited in…
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