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Maryland weighs reviving insurance for health insurers

(The Daily Record / Maximilian Franz)

(The Daily Record / Maximilian Franz)

ANNAPOLIS — To help steady Maryland’s struggling health care exchange, Maryland is considering steps some other states have started taking to stabilize insurance markets: revive a sort of insurance for insurers.

Measures relating to health insurance are scheduled for hearings Wednesday.

One includes a proposal for what’s known as reinsurance, which protects insurers against very high claims.

Sen. Thomas Middleton, a Democrat who is sponsoring the bill, says his bill would create a Band-Aid to secure the individual market this year. He says a potential funding source under consideration is about $340 million that health insurance companies don’t have to pay in federal taxes this year due to the federal tax overhaul.

Middleton also says it includes provisions for the state to seek federal waivers for a long-term solution.