SB 956 Maryland Senate · 2025 Regular Session

Health Insurance - Medicare Supplement Policies - Insurance Producer Commission

SB 956 requires insurance carriers to pay brokers the same commission rate for selling Medicare supplement policies during a guaranteed issue period (when seniors can switch plans without medical underwriting) as for sales during an open enrollment period (standard enrollment time). It directly affects Medicare supplement insurance brokers and the insurance companies that pay them commissions. The key provision mandates identical commission rates regardless of when the sale occurs, eliminating potential disparities in broker compensation. The law takes effect on October 1, 2025.

Issues: ✓ Healthcare

Bill status signed all 5 stages cleared

Introduction

Feb 2025

Committee Review

Apr 2025

Senate Passage

Apr 2025

House of Delegates Passage

Apr 2025

Signed into Law

May 2025

Introduced Feb 3, 2025 Signed May 20, 2025

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What changed between versions

First - Health Insurance - Medicare Supplement Policies - Broker Commission → Third - Health Insurance - Medicare Supplement Policies - Insurance Producer Commission · 4 edits

MODERATE

The bill was amended to clarify that commission rate parity requirements apply to both brokers and insurance producers, and to expand the scope of policies covered to include underwritten policies and those sold under specific legal provisions, not just guaranteed issue or open enrollment periods. The title was also updated to reflect the inclusion of insurance producers alongside brokers.

Scope change

The bill's scope was expanded to include insurance producers in addition to brokers and to cover a broader range of Medicare supplement policy sales scenarios beyond just guaranteed issue and open enrollment periods.

ELIGIBILITY

Changed the title from 'Broker Commission' to 'Broker Insurance Producer Commission' to explicitly include insurance producers who previously were not named in the title.

REQUIREMENT

Updated the purpose statement to require carriers to pay the same commission rate to both brokers and insurance producers regardless of whether policies are sold during guaranteed issue periods, open enrollment periods, as underwritten policies, or under specific legal provisions.

TIMELINE

Added committee report status showing the bill was adopted with favorable amendments and read for the second time on February 23, 2025.

TECHNICAL

Corrected a typo in the purpose statement by changing 'commission rate rates' to 'commission rate rates' (keeping the duplicate 'rates' as it appears in the amendment).

Floor votes · Senate Feb 24, 2025 · House of Delegates Mar 18, 2025

How they voted

45–0

Passed · 1 other

Total votes 46

Feb 24, 2025

D Democratic33

32 Yea 1

96% Yea

R Republican13

13 Yea

100% Yea

Vote distribution

All Yea All Nay Mixed No data

Full legislative history

Actions timeline

Total actions

Key actions

Committee

May 20, 2025

Signed into law

Approved by the Governor - Chapter 740

executive

Apr 3, 2025

Upper · Passed

Returned Passed

upper

Apr 2, 2025

Lower · Passed

Third Reading Passed

lower

Apr 1, 2025

Lower · Passed

Favorable Adopted Second Reading Passed

lower

Apr 1, 2025

Lower · Passed

Favorable Report by Health and Government Operations

lower

Mar 18, 2025

House Of Delegates · Passed

House of Delegates Vote: pass (134-2-3)

house of delegates

Mar 14, 2025

Committee

Referred Health and Government Operations

lower

Mar 13, 2025

Upper · Passed

Third Reading Passed

upper

Mar 12, 2025

Upper · Passed

Favorable with Amendments {

upper

Mar 11, 2025

Upper · Passed

Motion Laid Over (Senator Augustine) Adopted

upper

Mar 11, 2025

Upper · Passed

Favorable with Amendments {

upper

Mar 10, 2025

Upper · Passed

Favorable with Amendments Report by Finance

upper

Feb 24, 2025

Senate · Passed

Senate Vote: pass (45-0-1)

senate

Feb 3, 2025

Committee

First Reading Finance

upper

1 primary · 0 co-sponsors