Required Update: Maryland Health Insurance Coverage

Maryland has updated its “Health Insurance Coverage” posting. The notice has been revised to reflect that an employee and other family members may be eligible under Maryland law to continue coverage under a former employer’s health insurance policy if the employee quits or was terminated from the employment for a reason other than for cause. According to the Maryland Department of Labor, Licensing and Regulation (DLLR), the posting update is required for all covered employers.

Maryland’s Continuation Coverage Law

Maryland law requires insurers, nonprofit health service plans, and health maintenance organizations (HMO’s) to offer continuation coverage to individuals who lose group membership through voluntary and involuntary termination of employment for a reason other than for cause. Maryland’s continuation law applies only to group contracts that are issued or delivered to employers in Maryland and are not self-funded. See Md. Code Ins. § 15-409, COMAR 31.11.04.02.

An individual must meet the requirements to qualify for continuation coverage. An individual must be a resident of Maryland who had health insurance coverage under a group contract with the same employer for at least three (3) months before the termination. The person continuing coverage must also pay the full amount of the premium, including the portion formerly paid by the employer. There may also be an administrative fee added to the premium. The individual must submit a signed election for continuation coverage within the 45-day period following the date of termination of employment.

Continuation coverage ends after 18 months, or earlier for any of the following reasons:

• For not making payments on time
• If the individual becomes eligible for coverage under another group expense-incurred medical insurance policy or HMO
• If the individual becomes entitled to benefits under Medicare
• If the individual becomes covered under a non-group expense-incurred medical insurance policy or HMO
• If the individual terminates the coverage
• If the employer no longer offers any group health benefit plan.

Continuation coverage is always made available without evidence of insurability.

Customers with a Maryland All-On-One Poster dated 2/2011 can comply with the mandatory posting requirement using a 2011 Maryland Health Insurance Coverage Peel ‘N Post™ (#20704). All others can comply with the purchase of a new 8/2011 Maryland State & Federal All-On-One Poster (#83720) featuring all current, mandatory postings.