Better Small Business Employee Benefit Act Of 2025

SB 760 exempts health benefit plans issued through professional employer organizations (PEOs), coemployers, or similar employee leasing entities from certain requirements that normally apply to small business health plans in Maryland. This directly affects small businesses (defined as employers with ≤50 average employees) that use PEO services to provide health coverage to their workers. The bill revises Maryland’s insurance code (specifically sections 15-1201(r-1), 15-1204.1, and 31-101(aa)) to clarify that PEO-issued plans are not subject to the standard small business health plan rules, such as mandatory participation in the Maryland Health Benefit Exchange. The key mechanism removes compliance burdens for these specific plans while maintaining other health coverage standards for non-PEO arrangements.