Maryland Workers' Comp Legislation

2017 Legislation Impacting Chesapeake Employers’ Insurance Company and our Policyholders:

Senate Bill 72/HB 1315
- Workers' Compensation - Tiered Rating Plans and Merit Rating Plans

This law codifies the existing practice of allowing workers’ compensation insurers to establish pricing tiers as part of their respective rate filings. Chesapeake Employers’ Insurance Company proposed this bill and followed it through the legislative process.  Specifically, the changes to the law allow workers' compensation insurers to develop tiered rating plans. The insurers will be required to submit their tiered rating plan to the Insurance Commissioner at least 30 days in advance of the tiered rating plan's use for the Insurance Commissioner’s approval. As a result of this bill, workers' compensation insurers are also able to use a merit rating plan.

Currently, numerous workers’ compensation insurance carriers, including Chesapeake Employers, use pricing tiers as part of their rate filings. Without the use of these pricing tiers, numerous businesses in the state would be grouped in one rate class with there being no possibility of providing a premium reduction based on unique characteristics of a specific business. For Chesapeake Employers’ book of business in particular, the inability to use pricing tiers would cause significant market disruption. The changes to the law will be beneficial to Chesapeake Employers' policyholders and the industry as a whole. 

2016 Legislation Impacting Chesapeake Employers’ Insurance Company and our Policyholders:

SB 505/ HB 1619 - Workers' Compensation Insurance - Premium Discount - Alcohol- and Drug-Free Workplace Program
This bill requires workers' compensation insurers to provide a premium discount to policyholders for implementing and maintaining an alcohol and drug-free workplace program. The bill places an emphasis on education and treatment. Chesapeake Employers currently offers a drug free workplace credit with emphasis on drug testing (pre-hire, random and post-accident) that is not affected at this time by this law. This bill goes into effect on October 1, 2016.   

SB 851/ HB 1408 – P&C Ins. – Commercial Policies and WC Policies – Notices of Premium Increases
This bill alters the amount of premium increase that triggers the requirement of notice of a premium increase to be sent to a policyholder at least 45 days prior to the increase. An increase of the expiring policy premium of 15% or more (with some exceptions) will require a notice of premium increase to be sent. This bill goes into effect on October 1, 2016.  

SB 839/ HB 958 - Insurance - Rate Filings - Trade Secrets
This bill protects the confidentiality of rate filing, etc. information that an insurer files with the Maryland Insurance Commissioner as proprietary rate-related information. While Chesapeake Employers is not currently required to file rates with the MIA, after the statutory phase-in to the full NCCI affiliation we will be impacted by this bill. This bill goes into effect on October 1, 2016.      

HB 437/SB 537 - DHMH - Prescription Drug Monitoring Program - Modifications
This bill was a major Chesapeake Employers initiative for the 2016 Session. It will require authorized providers and prescribers to be registered with the Prescription Drug Monitoring Program before obtaining a new or renewal registration or by July 1, 2017, whichever is sooner. This bill requires that pharmacists be registered with the Program. Most importantly, this bill requires prescribers to request and access drug monitoring data in the course of treatment of their patients. Chesapeake Employers has been very active in the effort to change the law to require physicians and pharmacists to access the PDMP. This bill goes into effect on October 1, 2016.  

2015 Legislation Affecting Chesapeake Employers

Chesapeake Employers to Join NCCI, Could Write Business in Other States

Provisions of Senate Bill 465 to be phased in over 7 years

Senate Bill 465 was passed by the Maryland General Assembly and signed into law (Chapter 36, 2015) by Governor Larry Hogan on Tuesday, April 14, 2015.

The law requires Chesapeake Employers’ Insurance Company to join the National Council on Compensation Insurance (NCCI) and gradually adopt its rating system.

Chesapeake Employers will be required to file its rates with the Maryland Insurance Commissioner.

The law allows Chesapeake Employers, or a subsidiary of the company, to write workers' compensation insurance in other states. The Company will be limited to workers’ compensation and will continue to be the guaranteed market in the state of Maryland.

The law also alters the company's Board of Directors beginning in 2020. (Eventually 7 of the 9 Board members will be elected by policyholders.)

As we transition to NCCI over the next seven years, Chesapeake Employers will work diligently to minimize the impact to our policyholders.

Legislation Archive

2014 Legislation
2013 Legislation
2012 Legislation

2011 Legislation
2010 Legislation

The complete text of each bill is available online at the General Assembly website, under “Bill Information and Status.”

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