During a special session called to cure a budget deficit, Maryland?s General Assembly also passed major legislation to expand health insurance coverage and clean up the Chesapeake Bay ? programs that could cost the state more than $325 million a year by 2013.
Lawmakers early Monday morning passed legislation to expand health insurance to as many as 120,000 unprotected adults over the next five years. The plan ? which also includes a $20 million subsidy to small businesses that currently do not offer employees health coverage ? was passed in the final hours of the assembly?s special session to address the state?s $1.5 billion budget gap.
The health insurance expansion is contingent on voters? approval of a slots machine program on the November 2008 ballot.
“This is the first substantial step we have taken in many, many years to reform our health care program,” said Del. Peter Hammen, chair of the House?s health and government operations committee. “We have to have a safety net.”
Under current law, single adults must earn less than $4,000 each year to qualify for Medicaid. The new law extends the benchmark to households with annual incomes up to 116 percent of the federal poverty guidelines, or about $11,800 for a single adult.
The plan will cost $53 million in fiscal 2009, and grow to $280 million by 2013. Doubling the state?s cigarette tax to $2 per pack ? one in a series of tax hikes approved during the 3-week session ? will pay for the initial part of the plan.
Some Republicans were concerned with the cost and suggested legislators wait until the assembly?s regular session in take up new spending programs.
“I could support this wonderful bill if it were indeed revenue neutral,” said Del. Adelaide Eckardt, an Eastern Shore Republican. “I guess I?d rather see the money before we spend it.”
Lawmakers also approved a $50 million-per-year dedicated trust for Chesapeake Bay initiatives, drawing funds from the state?s taxes on car rentals and gasoline.
The “Chesapeake Bay 2010 Trust Fund” replaces long-thwarted attempts to create a green fund by taxing development. The fund will be divided among state agencies to help farmers reduce harmful runoff, fund improvements to local storm-water management plans and create urban parks.
