Health Insurance Marketplace in Maryland

If you live in Maryland, the Maryland Health Connection is the Health Insurance Marketplace to serve you. Instead of, you’ll use the Maryland Health Connection website to apply for coverage, compare plans, and enroll.  Visit the Maryland Health Connection now to learn more.

Choosing the Right Health Insurance Plan

There are a number of different tiers of plans available on the Maryland Health Insurance Exchange. Plans range from bare bones “bronze” plans which cover 60% of pocket medical costs to “platinum” plans which have greater coverage but come with higher premiums. In general higher premiums mean lower out-of-pocket costs and a wider insurer network of doctors and hospitals.The plans are as listed below:

NOTE: All cost sharing is of out of pocket costs. Please see ObamaCare health benefits for services that are covered at no out of pocket charge on all plans. The maximum out-of-pocket costs for any Marketplace plan for 2014 are $6,350 for an individual plan and $12,700 for a family plan.

Bronze Plan: The bronze plan is the lowest cost plan available. It has the lowest premiums and in exchange has the lowest actuarial value. The actuarial value of a bronze plan is 60%. This means that 60% of medical costs are paid for by the insurance company, leaving the other 40% to be paid by you.

Silver Plan: The Silver plan is the second lowest cost plan, it has an actuarial value of 70%. This means that 70% of medical costs are paid for by the insurance company, leaving the other 30% to be paid by you. The Silver plan is the standard choice for most reasonably healthy families who historically use medical services.

Gold Plan: The Gold plan is the second most expensive plan, it has an actuarial value of 80%. This means that 80% of medical costs are paid for by the insurance company, leaving the other 20% to be paid by you.

Platinum Plan: The Platinum plan is the plan with the highest premiums offered on the Maryland insurance exchange. The Platinum plan as an actuarial value of 90%. This means that 90% of medical costs are paid for by the insurance company, leaving the other 10% to be paid by you. This plan is suggested to those with high incomes and those in poor health. Although coverage is more expensive up front the 90% coverage of costs will help those who use medical services frequently.

Maryland health insurers don’t have to offer every tier of plan, but within the Maryland health insurance exchange, all health insurance companies must offer at least one silver plan and one gold plan to consumers.

Catastrophic plans – which have very high deductibles and essentially provide protection from worst-case scenarios, like a serious accident or extended illness — are available to people under 30 years old and to people who have hardship exemptions from the fee that most people without health coverage must pay.

Expanded Medicaid

Maryland will expand its Medicaid program in 2014 to cover households with incomes up to 133% of the federal poverty level. That works out to about $15,800 a year for 1 person or $32,500 for a family of 4. You can find out whether you qualify for Medicaid in Maryland 2 ways: Contact your state Medicaid agency right now or fill out an application for coverage in the Health Insurance Marketplace.

Information for:

Individuals and Families

Small businesses

If you need more detailed analysis, identification of issues, solutions, and implementation of your health insurance plan please let us know with the form below and we’ll get right back to you.

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Consumer Operated and Oriented Plan Program

Consumer Operated and Oriented Plan (CO-OP) Program are qualified nonprofit health insurance issuers that offer competitive health plans in the individual and small group markets.  CO-OP in Maryland:

Evergreen Health CO-OP

Accountable Care Organizations in Maryland

ACOs are profit-driven health innovators primarily serving Medicare patients who are financially rewarded by the government and private insurance companies for delivering medical services that lead to better health outcomes for less money.

Models Run at State Level

Health care facilities where Innovation Models are being tested

The Insurance Exchange/Marketplace

Establishing the Exchange in Maryland

What has been done, not been done, or left up to the federal government to do.

On April 12, 2011, Governor Martin O’Malley (D) signed SB 182/HB 166 into law establishing the Maryland Health Benefit Exchange (MBHE).1 In May of the following year, Governor O’Malley signed additional exchange legislation (SB 372/HB 433) which addressed multiple exchange implementation and operational issues and was based on recommendations by the Exchange’s Board of Directors and advisory groups from 2011.2 In August 2012, the state announced that the name for the new insurance marketplace would be Maryland Health Connection.

Structure: The legislation defines the MBHE as a quasi-governmental organization, specifically a “public corporation and independent unit of state government.”

Governance: The MBHE is governed by a nine-member board, including the Executive Director of Maryland’s Health Care Commission as the Chair, Secretary of Health and Mental Hygiene, Commissioner of Insurance, and six members appointed by the Governor and with consent from the Senate. Half of these members represent employers and individuals using the Maryland Health Connection and half provide specific knowledge and expertise. Board members cannot be affiliated with a carrier, insurance producer, third-party administrator, managed care organization, person contracting or in position to contract with the exchange, or any trade associations for these entities.

Current appointed Board members are:

  • Darrell Gaskin (Vice Chair), Johns Hopkins Bloomberg School of Public Health
  • Kenneth Apfel, University of Maryland, School of Public Policy
  • Georges Benjamin, American Public Health Association
  • Jennifer Goldberg, Maryland Legal Aid Bureau
  • Enrique Martinez-Vidal, AcademyHealth and Robert Wood Johnson Foundation
  • Thomas Saquella, Maryland Retailers Association

The Board hired an Executive Director in mid-September in 2011.

The MBHE is required by statute to maintain at least two standing advisory committees, though the subjects may change to support the decision-making for that particular year. Currently, the Board has established four advisory committees to study particular topics: the Navigator program, continuity of care, plan management, and finance and sustainability.3,4,5,6 Staff from the MBHE and other state agencies will look to the Advisory Committees to make recommendations on policy options, not to vote on policy decisions.

The MBHE also formed an Exchange Implementation Advisory Committee to provide technical and operational advice to MBHE staff and the Board.7 The Implementation Advisory Committee includes senior information technology (IT) and operations executives from organizations that intend to participate as insurance carriers or service providers in the individual or small business exchange. In addition, a number of spots on the Advisory Committee were reserved for stakeholders from community advocacy groups, academic organizations, and general technology advisors.

The Board has also concluded there should be a steering committee to examine risk adjustment, reinsurance, and risk corridors.8 This steering committee includes members from the Governor’s Office of Health Care Reform, the Maryland Health Insurance Plan, the MBHE, the Insurance Administration, Medicaid, the Health Services Cost Review Commission, and the Maryland Health Care Commission.

Contracting with Plans: In the first two years of operation, Maryland Health Connection will act as a clearinghouse with any qualified health plan (QHP) in the state eligible to participate. Beginning in 2016, Maryland Health Connection will have the authority to employ an alternative contracting option or active purchaser strategy, such as competitive bidding or negotiations with carriers.

QHPs participating in Maryland Health Connection must offer at least one plan at the silver level and one at the gold level outside the Exchange. Each insurance carrier will offer no more than four benefit designs per metal level, though separate limits apply for the individual and Small Business Health Options Plan (SHOP) exchanges. In addition, carriers with state market share above a certain threshold must sell a QHP in Maryland Health Connection. The minimum participation threshold for carriers will be $20 million in the small group market and $10 million in the individual market. Despite exceptions for small carriers, those offering a catastrophic plan outside Maryland Health Connection will be required to offer at least one catastrophic plan in the Health Connection, regardless of market share.

The MBHE board approved plan certification policies related to: service area designation; licensure and solvency; benefit design standards and review; marketing standards; review of rate changes; transparency and quality data; and access to essential community providers. The Exchange will perform annual reviews of all participating carriers and provide performance reviews that highlight areas for improvement.9 Carriers will be required to complete corrective action plans based on the issues in the annual review, and recertification will occur biannually.

In the first year, insurers will “self-define” network adequacy standards and submit provider data to the CRISP (Chesapeake Regional Information System for our Patients) Provider Information Management System. Insurance carriers will be required to participate in the Maryland Health Care Commission’s existing quality and performance evaluation system. In addition, carriers will be required to provide the MBHE with data each quarter regarding the number and type of providers available, the ability of enrollees to access services, and utilization and complaint data. The MBHE will accept Medicaid or Commercial accreditation and allow a one year grace period for non-accredited insurers to become accredited. In the second year of operation, the MBHE will reassess accreditation requirements, appropriate standardized network adequacy requirements, and other possible changes to plan management policies.

Dental and Vision Plans:
 In December 2012, the Board revised the interim plan management policies and procedures for adult and pediatric dental and vision plans.10 The MBHE anticipates requiring that all adult vision and dental coverage be offered through stand-alone plans with price disclosure to allow consumers to compare options. Pediatric vision coverage cannot be offered through stand-alone plans and must always be offered as part of the health benefit plan or as an additional benefit that can be purchased along with the health benefit plan. Pediatric dental coverage can be offered as part of the health benefit plan, as an additional benefit that can be purchased separately, or through a stand-alone plan.

Risk Adjustment, Reinsurance, and Risk Corridors: Maryland intends to use federal services to administer the state’s risk adjustment program but the MBHE will administer the state’s reinsurance program.

Consumer Assistance and Outreach: The online portal for Maryland Health Connection, with the new branding strategy, went live in August 2012. The MBHE plans to focus on outreach and training in the first half of 2013.

The Consolidated Service Center will be the main entry point for questions related to Maryland Health Connection, Medicaid eligibility and enrollment, and any other question related to health insurance.11 The Center will be prepared to manage calls from individuals, employees, employers, Navigators, Assisters, and others. To implement the Center, MBHE is working closely with multiple other state agencies to determine how best to address consumer questions on a variety of topics. In addition, the MBHE plans to contract with two vendors to project call volume, run cost and pricing impacts, and to provide project management support throughout implementation. The call center is expected to be operational beginning in June 2013.

Based on subcontractor analyses and stakeholder feedback, the MBHE established a regional Navigator strategy that is similar to the approach used by other state programs. The MBHE has contracted with one Outreach Entity in each of six regions.

For information about employment as a navigator in Maryland contact the Outreach Entities.

Though Outreach Entities can be either a single entity or a partnership of entitles in which one organization serves as the prime.12 In addition to certified individual Navigators, the Outreach Entities can also use non-certified personnel or “assisters” to provide certain services such as consumer education and outreach, facilitating eligibility determinations and redeterminations for premium tax subsidies or public coverage, and facilitating applications processes.

The Outreach Entities have a dedicated Exchange Navigator Program Manager to provide grant management, monitor performance, and manage databases of individual Navigator certification and training. The MBHE will supplement the Outreach Entities with statewide services that target a small percentage of the population in any given area but are needed statewide (e.g., services for the hearing and vision impaired). The MBHE will also provide the web portal and marketing materials to enable the Navigators to help consumers, access to dedicated customer service representatives at the call center, and a comprehensive training program to certify/license navigators. The Outreach Entities are also required to establish relationships with Local Health Departments. The Maryland Insurance Administration has regulatory oversight over the Outreach Entities.

There will be separate Navigator programs for the small group and individual markets. The SHOP Navigators will be required to obtain a special license from the Insurance Commissioner and training/authorization from the MBHE. Outreach Entities are encouraged, but not required, to provide SHOP exchange Navigator services through direct employment or engagement with SHOP Navigators. Staff can be trained to serve as Navigators to both the individual and SHOP exchanges, but the funding for the two exchanges will be tracked separately. The MBHE also plans to employ SHOP exchange Navigators that will be located in the call center and will perform limited outreach functions.

The Grant Solicitation for Outreach Entities was released in late 2012. Applications are due in late January and the grant awardees will be announced in April. Navigator training will begin in the summer of 2013.The first grant period for Outreach Entities is anticipated to be April 2013 through June 2014, with approximately $4 million available in grant funding.

Insurance Producers can sell plans both inside and outside Maryland Health Connection, after receiving training and authorization by the Health Connection, and will be paid directly by carriers. MBHE will require carriers to retain information about policies and procedures used to determine producer compensation both inside and outside the Connection. The Maryland Insurance Administration and the MBHE will use this information to assess whether additional action is necessary beginning in the second year of operations.

Small Business Health Options Program (SHOP) Exchange: In 2014 and 2015, the size of small employers in the SHOP Exchange will be limited to an average of 50 or fewer employees. In addition, the insurance market for SHOP exchange will not be merged with the market for individuals. Both traditional employer choice plans and the defined contribution option will be available within the SHOP exchange.

The MBHE issued recommendations, including that for the employee choice option at least 75% of employees from a group must enroll in SHOP QHPs.13 In addition, the employee choice model should use an individual rating methodology to address concerns about adverse selection, while an average age rating methodology should be used for the employer choice model.

Currently, third party administrators and brokers play a key role in the selection, purchase, and administration of insurance for small businesses.14 For this reason, the MHBE is planning to certify entities to service the small group market on behalf of the Health Connection if they meet the criteria of the ACA and state requirements, adhere to a rigorous set of performance measure and service levels, and be subject to oversight by the MHBE. These certified entities will receive compensation on a per-employee-per-month basis commensurate with what the market pays for services today, currently estimated at 0.5% to 1.0% of premiums.

Financing: Once Maryland Health Connection is operational, it is authorized to collect fees or assessments from participating plans, though not to the extent that the fees create a competitive disadvantage with plans offered outside the Health Connection. A joint executive-legislative committee is considering a range of additional financing options. At the same time, an Advisory Committee focused on exchange financing strategies continues to meet regularly.

In September, a subcontractor providing analytic support to the Joint Committee recommended a financing model that blends multiple approaches rather than relying on a single revenue source.15An example hybrid financing approach might include a combination of revenue collected from the non-group, small group, and large group markets, providers, and cigarette sales. In December 2012, the Joint Committee submitted a report to the Governor and General Assembly which included the following recommendations: the state should use a combination of at least two revenue streams; a transaction-based assessment on the whole non-group and small group market is preferable to an assessment applied only to plans inside Maryland Health Connection; and a broad-based assessment on the larger group market and/or an increase in the tobacco tax should be considered, while an assessment on hospitals should not be considered.

Information Technology (IT): Maryland intends to create a common IT system for Maryland Health Connection, Medicaid, and the Maryland Children’s Health Insurance Program (CHIP).16 In order to submit an application for the Early Innovator grant in 2010, Maryland initially focused development of the Health Connection’s IT systems on a prototype for pre-screening for eligibility and information verification. In 2011, the Board solicited subcontractor assistance with Phase 1A of the IT development program, which provides the core functionality for the individual exchange and Modified Adjusted Gross Income (MAGI) Medicaid eligibility determinations.17,18 Phase 1B focuses on SHOP technology enablement options and operations implementation, Phase 2 on non-MAGI determinations, and Phase 3 on other social service programs such as the Supplemental Nutrition Assistance Program (SNAP) and the Temporary Assistance for Needy Families (TANF). In the end, Maryland Health Connection’s IT system will be a single point of entry and will integrate with other state IT systems, such as the Medicaid Management Information System (MMIS), the Issuer Management System (SERFF), and the Client Automated Resource and Eligibility System (CARES) for non-MAGI eligibility determination and other social programs. To assist in financing the information technology upgrades of the state’s Medicaid eligibility systems, Maryland applied for and received CMS approval of an Advanced Planning Document for enhanced federal funding.19

Maryland completed an IT gap analysis and held a series of formal Joint Application Development (JAD) sessions. The JAD sessions provided an opportunity for key stakeholders to discuss IT issues related to: eligibility and enrollment; plan management; billing and payment; customer support; and reporting, transparency, and notifications. JAD participants include representatives from the Department of Health and Mental Hygiene (DHMH), the Department of Human Resources (DHR), as well as experts from insurance carriers, third-party administrators, Co-Ops, and managed care organizations.20 The state agencies involved in the JAD sessions also participate in the Exchange IT Systems Leadership Team, along with the Department of Information Technology, Medicaid, and the state’s Chief Innovation Officer. The leadership team meets weekly to provide guidance as the state plans and implements the IT system. Maryland is also participating in theEnroll UX 2014 project, which is a public-private partnership creating design standards for exchanges that all states can use.

The output from the JAD sessions was used to develop a strategy focused on replacing legacy enrollment and eligibly systems with commercial off-the-shelf (COTS) products. Maryland awarded a contract for assistance with combining COTS products and released another RFP in June 2012 for independent verification and validation during the design and development of Phases 1A and 1B.21 Maryland completed development and testing of all system components required for CMS certification by the end of 2012, with additional testing to be conducted in early 2013. Also in 2012, Maryland began Phase 1B and completed the Third Party Administrator (TPA) SHOP Certification Program, which defines the integration parameters and data elements required to interface the SHOP exchange with the TPA Marketplace and Back Office Administrative Systems. Maryland has also completed the initial design of the single sign-on and identity management strategy, which included discussions with the DMHR and DHR security officers.

The MBHE has decided to collect the initial billing for enrollment in the individual exchange, but will not perform ongoing billing and collections.22 This strategy clearly establishes the timing of the coverage effective date, relieves Maryland Health Connection of managing partial payments and arrears management, and takes advantage of mature capabilities of carriers for billing and collections. As a result, Maryland Health Connection will have additional points of carrier integrations, including: transmitting payment preference information to the carriers; automated data exchange for ongoing payment collections, eligibility changes, and changes in the advanced premium tax credit; and call transfers between carriers and the Health Connection’s customer service representatives.

Basic Health Program (BHP): Maryland is considering establishing an optional coverage program available through the Affordable Care Act (ACA) which allows states to use federal funding to offer subsidized health insurance to adults with incomes between 139 and 200% of the federal poverty level (FPL) who would otherwise be eligible to purchase subsidized coverage through an Exchange. The DHMH, together with a subcontractor, completed an analysis of the effect of a BHP in Maryland and found that it may redirect funds away from Maryland Health Connection. In addition, the state would have to bear expenses related to program administration and quality monitoring. In February 2012, the MBHE Board agreed with the Department’s recommendation that a decision on the BHP be deferred pending availability of additional federal guidance and information about rates and fiscal risks to the state.23

Essential Health Benefits (EHB): The Affordable Care Act requires that all individual and small-group plans sold in a state, including those offered through the Exchange, cover certain defined health benefits. The Maryland Health Care Reform Coordinating Council formed an advisory committee to assist in selecting the state’s EHB benchmark plan. On December 17, 2012, the Council reevaluated the possible benchmark plans in light of new federal guidance and selected the state’s largest small group plan, CareFirst of Maryland (Blue Cross Blue Shield)-HMO HSA Open Access plan. The Council also designated the GEHA Standard Option federal employee plan for the Maryland’s behavioral health benefit. Finally, the council designated the state’s current mandated habilitative services for individuals up age 19 and adopted the small group rehabilitative benefit for as the habilitative benefit for individuals over age 19.24

Exchange Funding

The DHMH has received three federal grants: an Exchange Planning grant of $1 million; an Early Innovator grant of $6.2 million to develop an exchange IT infrastructure that could be replicated by other states; a Level One Establishment grant of $27 million to conduct data and policy analysis that will inform the technical and operational infrastructure of Maryland Health Connection and enable rapid implementation of the IT platform; and a Level Two Establishment Grant of $123 million to support continued policy development and consumer outreach, assistance, and education.25,26

In addition, Maryland, along with nine other states, is receiving technical assistance from the Robert Wood Johnson Foundation through the State Health Reform Assistance Network; this assistance includes help with setting up health insurance exchanges, expanding Medicaid to newly eligible populations, streamlining eligibility and enrollment systems, instituting insurance market reforms and using data to drive decisions.27

Expansion of Medicaid

From 2014 to 2017, the federal government will pay for 100% of the difference between a state’s current Medicaid eligibility level and the ACA minimum. Federal contributions to the expansion will drop to 95% in 2017 and remain at 90% after 2020, according to the ACA.

As the ACA was originally written, states would lose all Medicaid funding if they refused to expand their program to the ACA minimum.

However, the Supreme Court in June 2012 ruled that the federal government could not withhold Medicaid funding for states that chose not to expand their programs. The decision effectively allowed state officials to opt out of the expansion, and some have said they will do just that.

Maryland is participating in Medicaid expansion.

Next Steps

On December 7, 2012, Maryland received conditional approval from the U.S. Department of Health and Human Services (HHS) to establish a state-based exchange.28 Final approval is contingent upon the state demonstrating its ability to perform all required Exchange activities on time, complying with future guidance and regulations, and acquiring legal authority to generate revenues that ensure operational sustainability.

Additional information about the Maryland Health Connection can be found at and the web portal at

1. SB 182/ HB 166. (Chapter 2). Maryland Health Benefit Exchange Act of 2011.
2. SB 372/ HB 433. Maryland Health Benefit Exchange Act of 2012.
3. Maryland Health Benefit Exchange presentation, “Continuity of Care Advisory Committee: Roles and Relationships, Scope of Committee, and Assignment of Members.” May 2012.
4. Maryland Health Benefits Exchange, Financial Committee Members (Accessed July 5, 2012)
5. Maryland Health Benefit Exchange presentation, “Plan Management Advisory Committee: Roles and Relationships, Scope of Committee, and Assignment of Members.” May 2012
6. Maryland Health Benefit Exchange presentation, “Navigator Advisory Committee: Roles and Relationships, Scope of Committee, and Assignment of Member.” May 2012.
7. Maryland Health Benefit Exchange. “Announcing the Creation of the Maryland Health Benefit Exchange Implementation Advisory Committee” Accessed February 22, 2012.
8. Maryland Insurance Administration Presentation to the Maryland Health Exchange Board. “Risk Mitigation Implementation Update.” March 13, 2012.
9. Maryland Health Connection. “Exchange Implementation Advisory Committee.” October 18, 2012.
10. Maryland Health Benefit Exchange Carrier and Qualified Plan Certification. Interim Procedures- Additional Definitions; Dental and Vision Plan Certifications Carrier Requirements Related to Producer Compensation Data. Accessed January 7, 2012.
11. Maryland Level Two Establishment Grant Application. July 12, 2012.
12. Maryland Health Connection. “Navigator Program. Pre-Solicitation Conference.” November 28, 2012.
13. Maryland Health Connection. “Small Business Health Options Program (SHOP): Exchange Board Update.” October 23, 2012.
14. Maryland Level Two Establishment Grant Application. July 12, 2012
15. Joint Committee on Maryland Health Benefit Exchange Financing. “Options for Financing the Maryland Health Benefit Exchange: Report and Recommendations to the Governor and Genreal Assembly.” December 1, 2012.
16. Maryland Health Benefit Exchange Level One Grant application. June 28, 2011.
17. Maryland Health Benefit Exchange, Request for Proposals for an eligibility and enrollment system to support the State in implementing key elements of the Affordable Care Act. Issue Date: October 21, 2011.
18. Maryland Level Two Establishment Grant Application. July 12, 2012
19.  Heberlein M, et al. “Performing Under Pressure: Annual Findings of a 50-State Survey of Eligibility, Enrollment, Renewal, and Cost-Sharing Policies in Medicaid and CHIP, 2011-2012” Kaiser Commission on Medicaid and the Uninsured. (January; #8272).
20. Maryland Health Benefit Exchange. “Exchange Implementation Advisory Committee Kick-Off Meeting.” February 23, 2012.
21. Maryland Health Benefit Exchange: Independent Verification and Validation. Request for Proposals. Solicitation No MDM0021004096. July 27, 3012.
22. Maryland Health Connection. Individual Market Billing and Collection Recommendation. December 11, 2012.
23. Maryland Health Benefits Exchange Board Meeting Minutes, February 14, 2012.
24. Maryland Health Care Reform website. “Meeting: HCRCC Selects Essential Health Benefits Benchmark. December 19, 2012.” Access January 3, 2013.  
25. Maryland Health Benefit Exchange Level One Grant application. June 28, 2011.
26. Maryland Health Benefit Exchange, Level Two Establishment Grant Application. July 12, 2012
27. Robert Wood Johnson Foundation. “RWJF Seeks Coverage of 95 Percent of All Americans by 2020.” May 6, 2011.
28. Letter from Secretary Sebelius to Governor O’Malley. December 7, 2012.

Provided by the Henry J. Kaiser Family Foundation


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