Maryland legislators joined CareFirst BlueCross BlueShield in introducing a $1.6 billion universal health care coverage bill, featuring a mandate that could penalize those not gaining coverage with a tax of up to $1,800 per year.

The “Healthy Maryland” initiative, set for implementation in 2010, would create a new, comprehensive insurance offering for the individual market with sliding-scale subsidies for low-income individuals. Coverage would be available to every Maryland resident regardless of health status or pre-existing conditions, according to the insurer.

Estimates say 780,000 Marylanders go without insurance coverage at some point each year.

The plan – outlined in Senate Bill 515 and House Bill 860 – also includes an individual mandate, where each Maryland resident must secure health coverage or be subject to an additional tax of up to $1,800 annually. Low-income residents earning below 300% of
the Federal Poverty Level – a $66,000 for a family of four – are exempt from the mandate.

In addition to the mandate, funding for the plan would come from existing revenues, member premiums and existing health care dollars currently used for the Maryland Health Insurance Plan, a state-managed health insurance program that offers CareFirst coverage to those unable to obtain health insurance from other sources.

Sen. Thomas M. “Mac” Middleton (D-Charles County), chairman of the Senate Finance Committee, and Del. Peter A. Hammen (D-Baltimore City) are sponsoring the legislation.

“Ensuring that every Maryland resident has access to quality health care is a monumental challenge, and this plan meets that challenge with coverage that is affordable, accessible and comprehensive,” Middleton said in a statement. “Under this program, Maryland could be a national leader in ensuring its residents have meaningful health care coverage.”

Hammen added, “There is no doubt that this is a challenging time to take up such a complex issue. But, if we want to take concrete steps toward achieving universal health coverage, we must start meaningful dialogue on the topic now.”

The latest plan is Maryland’s second universal health proposal. Last year, the “Health Care for All!” plan was unveiled to help individuals and small businesses access affordable and accessible health insurance, according to the sponsors of that plan, the Maryland Citizens’ Health Initiative.

Chet Burrell

Healthy Maryland would create a single health insurance offering for all commercial insurers, and all participating insurers would be required to offer individuals a plan with the same benefits at the same age-adjusted premium, according to CareFirst.

First-dollar coverage would be available for primary and preventive health services and, depending on funding availability, incentives could be offered to members who take steps to improve and maintain healthy behaviors.

“We are confident that this plan will meet the needs of Maryland’s uninsured,” said CareFirst President and CEO Chet Burrell. “With affordable premiums, incentives to encourage healthy behaviors, and an individual and employer mandate for coverage, the pieces are in place for a long-term solution to the challenge of providing quality, affordable health care for all. This plan is a solid starting point to make Maryland a national leader in providing health care coverage for all of its residents.”