Approval of Md. health insurance plan appears certain
Associated Press

Posted Saturday, November 10, 2007 at 6:30 am

ANNAPOLIS -- Maryland lawmakers appear certain to approve a $600 million plan to expand health insurance after a House committee voted overwhelmingly Friday to adopt the bill.

The measure expands Medicaid eligibility to chip away at the number of uninsured people in Maryland - up to 800,000 by some counts, or 14 percent of the population. The bill also pumps $20 million a year into subsidies for small businesses that aren't currently offering insurance to their employees.

"This is a bill we can't afford not to pass," said Delegate Dan Morhaim, D-Baltimore County.

The measure would cost more than $600 million over the next four years. The money would come from general taxes, although lawmakers meeting in a special session to address a looming shortfall are likely to double the state's tobacco tax from $1 a pack to $2 a pack to help pay for the health insurance plan.

Lawmakers also anticipate savings as more people get health insurance. That's because people without insurance tend not to seek medical help unless they're very sick, with all insured people picking up the tab.

"It's hurting all of us if we don't address this," said Delegate Donald Elliott, R-Carroll.

The full House is likely to take up the insurance bill Monday. The Senate has already passed an almost-identical version of the health plan, and Democratic Gov. Martin O'Malley sponsored the bill and is likely to sign it into law.

The plan would allow companies with fewer than 10 employees to seek $1,000-per-year subsidies for coverage to employees that earn less than an amount that will be set later. As part of the bargain, the employers would be encouraged to seek health insurers that offer wellness programs, which lower overall health care costs.

The only vote against the plan came from a Republican who suggested the subsidies be available only to legal citizens. Delegate Pat McDonough, R-Anne Arundel, withdrew his amendment after other committee members opposed the citizenship idea.

McDonough ultimately voted against the plan because he questioned the wisdom of starting a costly new program as the state faces a projected deficit.

The measure passed 21-1.


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