O’MALLEY-BROWN ADMINISTRATION’S HEALTH BENEFIT EXCHANGE BILL SIGNED INTO LAW
Law Leverages Federal Grants to Develop One-Stop Health Insurance Marketplace for Individuals and Small Businesses
ANNAPOLIS, Md. (May 2, 2012) – Today, Governor Martin O’Malley signed into law the O’Malley-Brown Administration’s Health Benefit Exchange Act of 2012, a major step forward in efforts to expand access to quality, affordable health care to more Marylanders. The new law, championed by Lt. Governor Anthony G. Brown, will allow Maryland’s Health Benefit Exchangeto become operational by the January 2014 deadline under the federal Affordable Care Act (ACA). The Exchange is a one-stop, transparent marketplace where individuals and small businesses can choose among benefit plans offered by private insurers and determine their eligibility for Medicaid and federal tax credits.
Maryland’s Health Benefit Exchange, which is expected to provide access to health care to over 350,000 Marylanders, is being established using no State funds due to $34.4 million in Federal grants that Maryland has received to plan and build the Exchange, including a $27.2 million Exchange Establishment grant and a $6.2 million Innovator grant given to six states leading the way on reform implementation.
“In Maryland, we appreciate the tremendous opportunity that the Affordable Care Act has provided to expand access, reduce costs, and improve the quality of health care for all Marylanders,” said Lt. Governor Brown. “Maryland’s Health Benefit Exchange is the most important component of our health care reform efforts, and thanks to the hard work of the General Assembly, the Exchange Board, the Governor’s Office of Health Care Reform, and numerous stakeholders throughout Maryland’s health care system, we have been able to build consensus and create an exchange that fits the unique strengths and needs of our State. By continuing to lead the way in health care reform, we will be able to maximize the Affordable Care Act in order to make Maryland the healthiest state in the nation.”
"This new law brings us a step closer to an effective health benefit exchange," said Dr. Joshua M. Sharfstein, Secretary of the Maryland Department of Health and Mental Hygiene. "Maryland will continue to be a leader in looking for ways to improve coverage and care."
Following 2011 legislation, led by Lt. Governor Brown, creating the framework for the exchange, the Maryland Health Benefit Exchange Board worked with a broad range of experts and stakeholders to develop a series of policy recommendations. These included four advisory committees with stakeholders from the health insurance industry; health care providers and associations; community members, advocates, and community-based organizations; academia; business owners; unions; local government officials; and consultants.
Based on the recommendations established through this open and collaborative process, the Health Benefit Exchange Act of 2012 puts in place many of the policies that will guide the Exchange’s operations, including outlining the types of health and dental plans that can be offered in the Exchange; allowing the Exchange to use active purchasing strategies after the first two years to further reduce costs and enhance the quality of plans offered; operating individual and small business markets separately; establishing “Navigator Programs” to provide outreach and assistance to consumers; and addressing other key issues such as risk adjustment, market rules, and the prevention of fraud, waste and abuse.
"We continue to be grateful for the support and involvement of all the stakeholders involved throughout the process who made the 2012 legislation reality," said Rebecca Pearce, Executive Director of the Maryland Health Benefit Exchange.
"We at the Maryland Health Care For All! Coalition are thrilled about the new Exchange law," said Vincent DeMarco, President of the Maryland Health Care For All! Coalition. "This measure will authorize the Exchange Board to implement policies that will make health care more affordable for Marylanders. We commend Governor Martin O'Malley, Lt. Governor Anthony Brown and the General Assembly for making this happen."
As Co-Chair of the Maryland Health Care Reform Coordinating Council, Lt. Governor Brown leads the O’Malley-Brown Administration’s health care reform efforts. Under the leadership of Governor O’Malley and Lt. Governor Brown, Maryland has implemented reforms that have expanded health coverage to over 315,000 Marylanders and put the State in position to maximize the Affordable Care Act. Earlier this year, the Lt. Governor launched HealthReform.Maryland.gov, a new website designed to provide information about what health care reform means to Maryland residents and small businesses.
Law Leverages Federal Grants to Develop One-Stop Health Insurance Marketplace for Individuals and Small Businesses
ANNAPOLIS, Md. (May 2, 2012) – Today, Governor Martin O’Malley signed into law the O’Malley-Brown Administration’s Health Benefit Exchange Act of 2012, a major step forward in efforts to expand access to quality, affordable health care to more Marylanders. The new law, championed by Lt. Governor Anthony G. Brown, will allow Maryland’s Health Benefit Exchangeto become operational by the January 2014 deadline under the federal Affordable Care Act (ACA). The Exchange is a one-stop, transparent marketplace where individuals and small businesses can choose among benefit plans offered by private insurers and determine their eligibility for Medicaid and federal tax credits.
Maryland’s Health Benefit Exchange, which is expected to provide access to health care to over 350,000 Marylanders, is being established using no State funds due to $34.4 million in Federal grants that Maryland has received to plan and build the Exchange, including a $27.2 million Exchange Establishment grant and a $6.2 million Innovator grant given to six states leading the way on reform implementation.
“In Maryland, we appreciate the tremendous opportunity that the Affordable Care Act has provided to expand access, reduce costs, and improve the quality of health care for all Marylanders,” said Lt. Governor Brown. “Maryland’s Health Benefit Exchange is the most important component of our health care reform efforts, and thanks to the hard work of the General Assembly, the Exchange Board, the Governor’s Office of Health Care Reform, and numerous stakeholders throughout Maryland’s health care system, we have been able to build consensus and create an exchange that fits the unique strengths and needs of our State. By continuing to lead the way in health care reform, we will be able to maximize the Affordable Care Act in order to make Maryland the healthiest state in the nation.”
"This new law brings us a step closer to an effective health benefit exchange," said Dr. Joshua M. Sharfstein, Secretary of the Maryland Department of Health and Mental Hygiene. "Maryland will continue to be a leader in looking for ways to improve coverage and care."
Following 2011 legislation, led by Lt. Governor Brown, creating the framework for the exchange, the Maryland Health Benefit Exchange Board worked with a broad range of experts and stakeholders to develop a series of policy recommendations. These included four advisory committees with stakeholders from the health insurance industry; health care providers and associations; community members, advocates, and community-based organizations; academia; business owners; unions; local government officials; and consultants.
Based on the recommendations established through this open and collaborative process, the Health Benefit Exchange Act of 2012 puts in place many of the policies that will guide the Exchange’s operations, including outlining the types of health and dental plans that can be offered in the Exchange; allowing the Exchange to use active purchasing strategies after the first two years to further reduce costs and enhance the quality of plans offered; operating individual and small business markets separately; establishing “Navigator Programs” to provide outreach and assistance to consumers; and addressing other key issues such as risk adjustment, market rules, and the prevention of fraud, waste and abuse.
"We continue to be grateful for the support and involvement of all the stakeholders involved throughout the process who made the 2012 legislation reality," said Rebecca Pearce, Executive Director of the Maryland Health Benefit Exchange.
"We at the Maryland Health Care For All! Coalition are thrilled about the new Exchange law," said Vincent DeMarco, President of the Maryland Health Care For All! Coalition. "This measure will authorize the Exchange Board to implement policies that will make health care more affordable for Marylanders. We commend Governor Martin O'Malley, Lt. Governor Anthony Brown and the General Assembly for making this happen."
As Co-Chair of the Maryland Health Care Reform Coordinating Council, Lt. Governor Brown leads the O’Malley-Brown Administration’s health care reform efforts. Under the leadership of Governor O’Malley and Lt. Governor Brown, Maryland has implemented reforms that have expanded health coverage to over 315,000 Marylanders and put the State in position to maximize the Affordable Care Act. Earlier this year, the Lt. Governor launched HealthReform.Maryland.gov, a new website designed to provide information about what health care reform means to Maryland residents and small businesses.