Better Small Business Employee Benefit Act of 2025

HB 1439 exempts health benefit plans issued through professional employer organizations (PEOs), coemployers, or employee leasing organizations from certain Maryland health insurance requirements that apply to other plans. This directly affects small employers (defined as those with an average of 50 or fewer employees) who use PEOs to provide health benefits to their workers. The bill modifies Maryland’s insurance code to create a specific exemption, removing the need for PEOs to comply with standard health plan rules under Section 15-1204.1(a)(2). This change simplifies access to health benefits for small businesses using PEO services without altering the core requirements for other health plan providers.