HB108 - Professional Employer Organizations

PARRIS N. GLENDENING Governor Maryland Insurance Administration STEVEN B. LARSEN Insurance Commissioner # Bulletin DATE: November 2, 1998 TO: Health Insurers RE: House Bill 108 - Professional Employer Organizations Bulletin No.: Life and Health 98-14 As a result of a market conduct examination of three health maintenance organizations, the Maryland Insurance Administration has become aware that not all HMOs and not all indemnity carriers are complying with Sections 15-1201(f), 15-1201(m) and 15-1212(a) of the Maryland Insurance Article concerning the insuring of leased employees to small employers. A copy of the law (Chapter 337 of the Acts of the General Assembly of 1998) and a list of PEOs is attached for your information. The law requires a carrier insuring a Professional Employer Organization (PEO) to determine the number of employees the PEO leases to each of its employer clients. Any employer client that is a small employer as defined in Section 15-1203 must be insured in accordance with Maryland law governing small employer groups. If there are any questions concerning this matter, please contact me. Donna B. Imhoff Donna B. Imhoff Associate Commissioner NA/do Enc. msworks\nelson\smallgrp.wps-do [LOGO] 525 ST. PAUL PLACE • BALTIMORE, MARYLAND 21202-2272 • DIRECT DIAL (410) 468- (410)468-2000 • Outside Baltimore Metro Area, Toll Free 1-800-492-6116 • FAX: (410) 468-2020 TTY Users via the Maryland Relay Service at 1-800-735-2258 # Professional Employer Leasing Organizations | Name | 10/15/98 | List of organization and Source | Contact | Source | | --- | --- | --- | --- | --- | | AA Staff Leasing | | Phone | | Montgomery County Yellow Pages | | Administaff, Inc | | 703 461 9009 | | walker/Balto yellow pages | | Administaff, Inc | | 301 572 2667 | Andrew Stephenson | | | Administrative Solutions | | 800 600 9797 | | Aetna USHealthCare | | Advanced Computer Consultants, Inc. | | 801 961 4862 | | Yahoo | | Advanced Personnel Concepts | | | | Baltimore Yellow Pages | | Alcott Group | | 410 661 9700 | | Aetna USHealthCare | | Allied Technologies International, Inc. | | 516 420 0100 | | Yahoo | | American Technical Resources, Inc. | | 703 917 7800 | | Montgomery County Yellow Pages | | Asian Business Co-Op | | 301 652 9888 | Amy Yu | walker | | Asian Business Co-Op | | 800 777 2582 | | | | Automotive Talent Registry | | 301 621 5387 | | Baltimore Yellow Pages | | Barrett Business Services, Inc | | 410 339 7590 | | Baltimore Yellow Pages | | Barrett Business Services, Inc | | 410 766 0004 | | Baltimore Yellow Pages | | Doctors' Corner Personnel Service, Inc. | | | | Yahoo | | Employee Screening Services | | 301 610 0710 | | Montgomery County Yellow Pages | | Employee Solutions | | 602 381 5108 | | Aetna USHealthCare | | Employers Resource Management Co | | 301 595 4277 | | Montgomery County Yellow Pages | | Express Business Solutions | | 410 721 7077 | Jeffrey Jenson | walker | | Express Business Solutions | | 800 721 8989 | | | | Hagon Coporation | | 301 577 5441 | | Montgomery County Yellow Pages | | HRC | | 214 902 9100 | | Aetna USHealthCare | | Human Resource Alternatives | | 609 987 9779 | | Aetna USHealthCare | | Human Resources Technology Corporation | | 410 453 9500 | | Baltimore Yellow Pages | | Human Resources Technology Corporation | | 410 872 4949 | Scott Thompson | walker/Prudential Health Care | | Human Resources Technology Corporation | | 800 479 3241 | | | | Human Resources, Inc. | | 410 224 3666 | | Baltimore Yellow Pages\ | | Human Resources, Inc. | | 410 451 4202 | | | | Integrated Employment Group, Inc. | | 410 685 6100 | Brian McComas | walker | | Integrated Employment Group, Inc. | | 800 579 IEG1 | | | | KPS Employee Leasing, Inc. | | 410 321 7123 | Kent P. Swanson | walker | | KPS Employee Leasing, Inc. | | 800 KPS 9029 | | | | Logistics Staffing | | 410 987 9610 | | Baltimore Yellow Pages | | Metro Payrolling Services | | 410 727 8845 | | Baltimore Yellow Pages | | Modern Employers, Inc | | 410 418 4040 | Richard B. Hendin | walker | page 1 Unofficial Copy C3 1998 Regular Session 8lr0722 CF 8lr2090 Delegate Donoghue Introduced and read first time: January 16, 1998 Assigned to: Economic Matters Committee Report: Favorable House action: Adopted Read second time: February 26, 1998 # CHAPTER 337 1 AN ACT concerning 2 Small Group Health Insurance Market - Professional Employer 3 Organizations - Repeal of Termination Date 4 FOR the purpose of repealing a certain termination date for a provision of law that 5 makes the provisions of the Maryland Health Insurance Reform Act applicable 6 to certain professional employer organizations. 7 BY repealing and reenacting, without amendments. 8 Article - Insurance 9 Section 15-1201(f) and (m) and 15-1212(a) 10 Annotated Code of Maryland (1997 Volume) 12 BY repealing and reenacting, with amendments. 13 Chapter 420 of the Acts of the General Assembly of 1997 14 Section 3 15 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF 16 MARYLAND. That the Laws of Maryland read as follows: 17 Article - Insurance 18 15-1201. 19 (f) (1) "Health benefit plan" means: 20 (i) a policy or certificate for hospital or medical benefits: HOUSE BILL 108  (ii) a nonprofit health service plan; or (iii) a health maintenance organization subscriber or group master 2 contract. 4 (2) "Health benefit plan" includes a policy or certificate for hospital or 5 medical benefits that covers residents of this State who are eligible employees and 6 that is issued through: 7 (i) a multiple employer trust or association located in this State or 8 another state; or 9 (ii) a professional employer organization, coemployer, or other 10 organization located in this State or another state that engages in employee leasing. 11 (3) "Health benefit plan" does not include: 12 (i) accident-only insurance; 13 (ii) fixed indemnity insurance; 14 (iii) credit health insurance; 15 (iv) Medicare supplement policies; 16 (v) Civilian Health and Medical Program of the Uniformed Services 17 (CHAMPUS) supplement policies; 18 (vi) long-term care insurance; (vii) disability income insurance; 20 (viii) coverage issued as a supplement to liability insurance; 21 (ix) workers' compensation or similar insurance; 22 (x) disease-specific insurance; 23 (xi) automobile medical payment insurance; 24 (xii) dental insurance; or 25 (xiii) vision insurance. 26 (m) "Small employer" means: 27 (1) an employer described in § 15-1203 of this subtitle; or 28 (2) an entity that leases employees from a professional employer 29 organization, coemployer, or other organization engaged in employee leasing and that 30 otherwise meets the description of § 15-1203 of this subtitle. 15-1212. 2 (a) (1) Except as provided in subsections (b) and (c) of this section, a carrier shall renew a health benefit plan at the option of the small employer. 4 (2) On renewal, a carrier may not exclude eligible employees or 5 dependents from a health benefit plan. 6 (3) (i) A carrier shall mail a notice of renewal to the small employer at 7 least 30 days before the expiration of a health benefit plan. 8 (ii) The notice of renewal shall include the dates of the renewal 9 period, the health benefit plan rates, and the terms of coverage under the health 10 benefit plan. 11 (4) Policies or certificates for hospital or medical benefits issued through 12 a professional employer organization, coemployer, or other organization under this 13 subtitle may, with the consent of the carrier, have a common renewal date. 14 Chapter 420 of the Acts of 1997 15 SECTION 3. AND BE IT FURTHER ENACTED. That this Act shall take effect 16 October 1, 1997. [It shall remain effective for a period of 1 year and, at the end of 17 September 30, 1998, with no further action required by the General Assembly, this 18 Act shall be abrogated and of no further force and effect.] 19 SECTION 2. AND BE IT FURTHER ENACTED. That this Act shall take effect 20 July 1, 1998.