Health Insurance Costs Nearing State-Mandated Limit in Maryland

The cost of health insurance benefits required by Maryland is nearing a state-mandated cap set to ensure affordability, according to a report by the Maryland Health Care Commission, the Baltimore Sun reports. Under a 1999 law, the annual cost of a policy that covered only state-required benefits is limited to 2.20% of the state's average annual wage. Maryland requires health insurance plans sold in the state to cover 25 services, including diabetes medicines, mental health treatment and hospital services for a two-day maternity stay. Large, self-insured companies are exempt from the mandates. The report found the cost of a policy sold in Maryland that covers only the 25 services is $841 per year, or 2.19% of the average annual wage. Given that health costs are increasing, the report said the ceiling is likely to be broken next year, even if the state Legislature does not mandate new benefits. While the report did not recommend cutting benefits or raising the cost ceiling, commission Executive Director Barbara McLean said that if the costs exceed the ceiling, the commission would freeze the mandates until it conducts a more detailed study (Salganik, Baltimore Sun, 11/27).