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Bill would create population health improvement fund to support Maryland's AHEAD model
Summary
Maryland Department of Health and stakeholders told the Health and Government Operations Committee that HB 1104 would authorize a pooled Population Health Improvement Fund required under Maryland's AHEAD agreement with CMS, outline how funds are reviewed and reported, and permit both public and private contributions.
The Maryland Department of Health and partner groups told the House Health and Government Operations Committee on Tuesday that House Bill 1104 would authorize a Population Health Improvement Fund to support the state's participation in the AHEAD (Advancing Health Equity Approaches and Development) model.
Assistant Secretary Elizabeth Edsel Kromm, who testified for the Department of Health, said the state's AHEAD agreement with the Centers for Medicare and Medicaid Services requires a dedicated fund to support population health investments aligned with the state health equity plan. "The work supported by the fund must align with the AHEAD model's state health equity plan," she said, adding that the plan is due to CMS by July 1 and is being developed by the Maryland Commission on Health Equity.
The bill directs the department to develop guidelines describing eligibility, funding categories and reporting requirements, Kromm said, and to form a review team to evaluate applications. She testified the fund is intended as a pooled vehicle that can accept both public and private dollars; hospital and other contributors would be represented on the review team.
Representatives of the Maryland Hospital Association and the Maryland Health Care Commission said they support the concept but are working with the department on clarifying implementation details. Andrew Nicholas of the hospital association called department engagement on the bill "very productive". David Sharp of the Maryland Health Care Commission said the bill clarifies that electronic health care transaction data may be used to support Maryland's participation in the AHEAD model and addresses concerns electronic health networks raised about permitted uses of data.
Committee members pressed for details about funding sources. Kromm and other witnesses described a one-time action approved by the Health Services Cost Review Commission in December to increase revenues by $25 million for calendar year 2025, contingent on the fund's creation; ongoing assessments would require HSCRC votes and separate processes. The department also said the fund would not be used to address hospital capital depreciation or other rate-setting matters; its use is limited to meeting the state health equity plan's measures and targets.
The hearing record shows the department plans stakeholder feedback on guidelines and regular reporting requirements once the fund is established. No formal committee vote or amendment was recorded at the hearing.
The committee heard the bill jointly with members from Appropriations; testimony concluded with the chair thanking Appropriations members for joining the hearing.
