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SB 229

Health Services Cost Review Commission - User Fee Assessment - Repeal of Sunset

2025 Regular Session

Maryland repeals the sunset on the Health Services Cost Review Commission's user fee authority, allowing indefinite hospital funding of rate-setting operations without periodic legislative reauthorization.

Approved by the Governor - Chapter 26
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Bill Summary · SB 229

Legislative bill overview

SB 229 repeals the sunset provision on the Health Services Cost Review Commission's (HSCRC) user fee assessment authority in Maryland. This means the HSCRC can continue collecting fees from hospitals and health systems indefinitely rather than having this authority expire on a set date. The bill eliminates the requirement for periodic legislative reauthorization of this funding mechanism.

Why is this important

The HSCRC uses these user fees to fund its operations—the agency that regulates hospital rates and healthcare costs across Maryland. Without this bill, the fee authority would have expired, potentially disrupting the commission's ability to function and its oversight of one of the state's largest industries. This directly affects hospital operations, healthcare costs, and the state's rate-setting regulatory framework.

Potential points of contention

  • Permanence without review: Eliminating the sunset removes a built-in legislative checkpoints to evaluate whether the fee structure and HSCRC's performance remain appropriate
  • Fee burden on healthcare providers: Hospitals must continue funding HSCRC operations through user fees, which some argue increases healthcare costs passed to patients
  • Regulatory accountability: Permanent funding authority with less frequent legislative oversight may reduce pressure on HSCRC to demonstrate cost-effectiveness and justify its spending

Compiled from official sources — confirm details with the bill’s official record.

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