Senate panel OKs 2% tax on premiums of for-profit HMOs...


March 09, 2002|By FROM STAFF REPORTS

Senate panel OKs 2% tax on premiums of for-profit HMOs

Seeking to resolve deficits in Maryland's Mental Hygiene Administration, a Senate committee voted yesterday to impose a 2 percent tax on premiums collected by for-profit health maintenance organizations.

The money -- expected to total as much as $135 million over the next 2 1/2 years -- would help resolve budget shortfalls that are threatening the services provided by nonprofit community mental health clinics. It would also pay for increases in the state's reimbursement for those clinics' services.

Members of the Senate Budget and Taxation Committee said the tax would put for-profit HMOs on equal footing with for-profit health insurance companies. Those companies have to pay the state's corporate income tax, but the HMOs don't. The measure now goes to the Senate Finance Committee for consideration.

Senate seeks to help heirs of Sept. 11 attack victims

The state Senate unanimously approved legislation yesterday that would ensure that the estates of people who died as a result of the terrorist attacks of Sept. 11 are not assessed any Maryland taxes or fees.

The measure, sponsored by Sen. Leo E. Green, a Prince George's Democrat, would waive any fees that might be assessed by registers of wills as well as any inheritance taxes. Similar legislation is pending in the House of Delegates.

Governor appoints Lake to St. Mary's College board

Gov. Parris N. Glendening appointed former White House National Security Adviser Anthony Lake to the board of trustees of St. Mary's College yesterday.

Lake's selection was among 51 made by Glendening in his second list of appointments. Lake was President Bill Clinton's first national security adviser.

All such appointments require confirmation by the state Senate.

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