Health Insurance - Federal Conformity - Definitions of Health Benefit Plan

SB 211 aligns Maryland's health insurance definitions with federal rules by clarifying that certain hospital indemnity and fixed-dollar coverage plans are excluded from the definition of a "health benefit plan." This directly affects insurers selling standalone hospital indemnity policies (e.g., fixed daily payments for hospital stays) and their customers. The bill modifies four sections of Maryland law to ensure these plans meet federal exceptions (45 C.F.R. §146.145), requiring insurers to prominently display a notice stating: "This is a supplement to health insurance and is not a substitute for major medical coverage. Lack of major medical coverage may result in a tax penalty." The policy change takes effect October 1, 2025.