Maryland universal coverage plan estimated to cost $2.5 billion

The Maryland Health Care Commission on Thursday said its proposal to provide health coverage to nearly all of the state's uninsured residents would cost $2.5 billion annually, the Baltimore Sun reports (Salganik, Baltimore Sun, 2/16).

The draft plan, which was proposed in November, calls for creating an "insurance exchange" system, under which residents could choose among different plans offered by insurers.

Workers would keep the same coverage if they switched jobs. Each employer would be responsible for determining their contribution amount.

The state would provide subsidies for low-income workers, according to the draft plan.

The plan would not apply to large employers, though the size requirement had not been determined (Kaiser Daily Health Policy Report, 11/20/06).

Rex Cowdry, executive director of MHCC, said the plan that was studied to determine the cost estimate represents "the most extreme design option."

He said that the commission would begin to look at options for less-comprehensive benefits to reduce costs, but it would not be able to complete a study of alternatives before the end of the legislative session.

Cowdry on Thursday also summarized consultant and staff studies that questioned two other proposals to expand coverage.

One would allow insurers to use health status to set premiums, instead of basing rates on age and region of the state.

The second proposal would open up the small business health insurance market to companies with 75 to 100 workers.

Currently, companies with 50 or fewer workers are eligible for plans in that market (Baltimore Sun, 2/16).