Maryland Senate Approves Health Care Expansion Bill

Main Category: Medicare / Medicaid / SCHIP
Article Date: 14 Nov 2007 - 6:00 PDT

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The Maryland Senate on Friday voted 30-17 to approve legislation that would expand Medicaid eligibility for adults and extend health insurance premium subsidies to small businesses and their employees, the Baltimore Sun reports. The vote comes just months after state lawmakers rejected a similar measure.

The legislation would increase the Medicaid income eligibility threshold for adults from about 40% of the federal poverty level to 116%. The change eventually would allow an estimated 20,000 uninsured parents to qualify for the program and would draw more children into the program. Children in families with incomes up to 300% of the poverty level are currently eligible for Medicaid. Childless adults could receive some health care services under another state program until they receive full Medicaid benefits. More than 50,000 childless adults eventually could be added to the program, the Sun reports.

In addition, the measure would provide subsidies of up to $1,000 per year to small businesses that do not offer workers health benefits, as well as $1,000 per year to each employee who enrolls in an employer-sponsored plan. Small businesses would have to implement employee wellness programs to receive the funds.

When fully implemented, the plan would extend insurance to about 100,000 state residents and cost more than $600 million annually, including federal matching funds and $250 million in additional state revenue. Some of the provisions may be canceled if funding is unavailable, according to the Sun. State Republicans have criticized the timing of the health care expansion as inappropriate because of a projected $1.7 billion state budget shortfall for fiscal year 2008. The House of Delegates is expected to take up health care legislation in the coming days, the Sun reports (Smitherman, Baltimore Sun, 11/10).

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