Md. House approves bill to limit individual health plan premium hikes

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A bill prohibiting health insurance carriers in the state from increasing premiums on individual health plans more than once a year was passed unanimously by the Maryland House of Delegates.

The 127-0 vote came March 12, just a week after the House Health and Government Operations Committee also voted unanimously in favor of the measure, which is sponsored by 20 state delegates.

The bill would prohibit carriers from raising an individual’s premium on an individual health benefit plan more frequently than once every 12 months. The bill’s provisions also would apply to an increase if an individual moving to a higher age band, according to text of the legislation. The only exception is if the premium increase is solely due to the enrollment of a new family member on the individual health benefit plan of the individual.

The stipulation, if subsequently approved by the state Senate and Gov. Martin O’Malley, would apply to all individual health benefit plans issued, delivered or renewed in Maryland, starting Oct. 1.

According to the fiscal note accompanying the bill, in 2009, there were 169,629 covered lives in Maryland’s individual market. About 3.4% of the state population under 65 is insured in the individual market.

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