Give Maryland Small Businesses More Healthcare Options
Small businesses are the backbone of Maryland’s economy, but many struggle to provide affordable, competitive health benefits for their employees. Unlike large employers, small businesses often lack the purchasing power needed to secure comprehensive coverage at competitive rates. This means their employees frequently face higher premiums, higher deductibles and narrower plan options than workers at larger companies doing the same jobs.
Maryland lawmakers can address this challenge by advancing legislation that gives small businesses with fewer than 50 employees access to large-group health plans through PEOs.
The Healthcare Challenge Facing Maryland Small Businesses
For many small business owners in Maryland, offering health coverage that can compete with a large corporation’s benefits package is often out of reach. The result is a widening gap: employees at small businesses pay more for less, and owners struggle to attract and keep the talent their business needs to grow.
How PEOs Help Small Businesses Compete
Professional employer organizations (PEOs) can help close that gap. PEOs provide small businesses with HR support, payroll administration, workers’ compensation assistance and other services that help companies compete, grow and support their employees. Just as importantly, PEOs pool employees from many small businesses together, giving them the purchasing power of a large employer — including access to comprehensive health plans.
Maryland’s Misguided Approach
Maryland law currently prevents PEOs from giving their small business clients with fewer than 50 employees access to large-group health insurance plans. In 47 other states, small businesses that partner with a PEO can offer their employees the same kind of comprehensive coverage available to workers at much larger companies.
What the Fix Would Mean for Maryland Small Businesses
Updating Maryland law to give small businesses with fewer than 50 employees access to large-group health plans through PEOs would:
- Help employers recruit and retain talented workers
- Expand access to quality, affordable coverage for employees
- Give small businesses more options to manage rising healthcare costs
- Bring Maryland in line with the overwhelming majority of states
This is a practical, pro-employee and pro-small-business solution. Maryland lawmakers should advance legislation that allows small businesses with fewer than 50 employees to access large-group health plans through PEOs.