Maryland: Medicaid Expansion and Small Business Assistance

Maryland will phase in its Medicaid expansion over several years. The first phase, called the Medical Assistance to Families program, increases Medicaid eligibility for parents from 30 to 116 percent FPL ($20,500 for a family of three).^[ii] To date, more than 16,000 parents and caretaker relatives have enrolled. The second phase of the Medicaid expansion increases the services offered under the Primary Adult Care (PAC) program. The program will continue to be available to any eligible individual, though the state may have to cap it at some point because of budget constraints. PAC, which for the past few years has provided basic primary care services to low-income adults, will—over the next three years—add benefits such as hospitalization and low-cost or free prescriptions. The goal is to increase the benefit package over a number of years until PAC beneficiaries receive full Medicaid benefits. These benefits would be phased in over a number of years.

 

The law also creates the Health Insurance Partnership, a premium subsidy program for small businesses that began enrollment in October 2008. A business is eligible to receive a subsidy of up to 50 percent of the premium from the Maryland Health Care Commission if it meets the following criteria:

 

 

The Maryland Health Care Commission is responsible for administering the partnership program. It provides assistance to employers establishing Section 125 plans and expects to enroll more than 1,500 businesses in the program’s first year.^[iv] As of December 1, 2008, more than 80 businesses had enrolled, covering 420 lives. For a health plan to be eligible for a subsidy, it must encourage wellness by providing employees with a health risk assessment and incentives for health-promoting activities, preventive care, and chronic care management.^[v]

 

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