MarylandHB 12432025 Regular SessionHouseWALLET

Health Insurance - Coverage for Specialty Drugs

Sponsored By: Steve Johnson (Democratic)

Signed by Governor

Health - InsuranceDrugs -see also- Cannabis; ControlDangSubst; Pharm; etc.Health Insurance -see also- ACA; HMOs; MCOsHealth Maintenance Organizations -see also- Manage Care OrgsHealth Occupations -see also- (specific health occupations)Health Services Cost Review CommissionMedical TreatmentsNonprofit OrganizationsPrices -see also- Consumer Price IndexReimbursement RatesRules and Regulations

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Bill Overview

Analyzed Economic Effects

3 provisions identified: 3 benefits, 0 costs, 0 mixed.

More specialty-drug coverage for Maryland patients

For Maryland policies issued, delivered, or renewed beginning January 1, 2026, private health plans cannot exclude qualifying specialty-drug coverage. The provider must be legally authorized, in-network for covered oncology services, and follow state specialty-drug rules. Covered types include infused or auto-injected drugs, oral targeted immune modulators, and oral drugs requiring complex dosing or accompanying infusion or radiation treatment. A specialty drug must treat a complex, chronic, or rare condition and cost at least $600 for up to 30 days. It must also be uncommon at retail pharmacies and need special handling, delivery, or extra patient education or support. Drugs prescribed for diabetes, HIV, or AIDS are excluded from this definition. Plans can still deny treatment that does not meet medical-necessity standards.

Fairer specialty-drug payments for pharmacies

Beginning January 1, 2026, pharmacy benefit managers working for insurers face payment-parity rules for covered specialty drugs. They cannot pay a pharmacy or pharmacist less than themselves or an affiliated business for the same product or service. The law includes a specialty-drug exception and carve-outs for mail-order pharmacies and chains with more than 15 stores. It also bars requiring patients to use a specific pharmacy, except for specialty-drug arrangements allowed by the law. These protections do not set patient prices or guarantee savings.

Payment rules for specialty-drug providers

Beginning January 1, 2026, health plans and covered in-network providers must agree on payment for specialty drugs covered by this law. Providers must bill these drugs at a nonhospital level of care or place of service. Payment cannot exceed the designated specialty pharmacy's rate unless the plan and provider agree otherwise. The Health Services Cost Review Commission keeps its rate-setting authority in settings it regulates. These payment rules do not guarantee lower patient bills.

Sponsors & Cosponsors

Sponsor

  • Steve Johnson

    Democratic • House

Cosponsors

  • Tiffany T. Alston

    Democratic • House

  • Heather Bagnall

    Democratic • House

  • Harry Bhandari

    Democratic • House

  • Brian Chisholm

    Republican • House

  • Bonnie Cullison

    Democratic • House

  • Pam Lanman Guzzone

    Democratic • House

  • Terri L. Hill

    Democratic • House

  • Thomas S. Hutchinson

    Republican • House

  • Anne R. Kaiser

    Democratic • House

  • Kenneth Kerr

    Democratic • House

  • Nicholaus R. Kipke

    Republican • House

  • Lesley J. Lopez

    Democratic • House

  • Matthew Morgan

    Republican • House

  • Ashanti Martinez

    Democratic • House

  • Joseline A. Peña-Melnyk

    Democratic • House

  • Teresa E. Reilly

    Republican • House

  • Samuel I. Rosenberg

    Democratic • House

  • Kim Ross

    Democratic • House

  • Kathy Szeliga

    Republican • House

  • Deni Taveras

    Democratic • House

  • Jennifer White Holland

    Democratic • House

  • Jamila J. Woods

    Democratic • House

  • Teresa Woorman

    Democratic • House

Roll Call Votes

All Roll Calls

Yes: 183 • No: 2

Senate vote • 4/2/2025

Third Reading Passed

Yes: 46 • No: 0 • Other: 1

House vote • 3/13/2025

Third Reading Passed

Yes: 137 • No: 2 • Other: 1

Actions Timeline

  1. Approved by the Governor - Chapter 729

    5/20/2025
  2. Returned Passed

    4/2/2025House
  3. Third Reading Passed (46-0)

    4/2/2025Senate
  4. Second Reading Passed

    3/28/2025Senate
  5. Favorable Adopted

    3/28/2025Senate
  6. Favorable Report by Finance

    3/27/2025Senate
  7. Referred Finance

    3/17/2025Senate
  8. Third Reading Passed (137-2)

    3/13/2025House
  9. Second Reading Passed with Amendments

    3/12/2025House
  10. Favorable with Amendments {733628/1 Adopted

    3/12/2025House
  11. Favorable with Amendments Report by Health and Government Operations

    3/12/2025House
  12. Hearing 2/27 at 2:00 p.m.

    2/26/2025House
  13. Hearing canceled

    2/26/2025House
  14. Hearing 2/27 at 1:00 p.m.

    2/12/2025House
  15. First Reading Health and Government Operations

    2/7/2025House

Bill Text

  • Enacted

    5/20/2025

  • Third Reading

    3/12/2025

  • First Reading

    2/7/2025

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