By: Maryland Insurance Administration


The Maryland Insurance Administration’s core mission is to make sure residents of our great state are protected when they buy insurance.

That consumer protection begins at our agency by regulating the availability of insurance coverage at fair prices. Make no mistake, the prices that Marylanders pay for insurance would rise dramatically if House Bill 1628 passes as drafted.

The bill would extend Maryland’s sales tax to currently exempt services, including the sale of insurance products. That means most Marylanders would see an immediate 5% increase in insurance premiums. For many families, such an increase in the cost of essential products, especially health insurance, would create a great financial hardship.

The Maryland Insurance Administration is extremely concerned about this direct impact on families. But we’re also concerned about the potential impact on the state’s thriving insurance industry, which employs about 50,000 people in Maryland.

A fair, competitive marketplace keeps prices under control and encourages good customer service. Since 2015, we have added more than 200 insurance companies and additional lines of business to the Maryland market, giving consumers more choices. A sales tax on premiums would make Maryland a much less attractive place to do business.

As an agency charged with protecting consumers and maintaining a fair, competitive insurance market, we urge the General Assembly to reconsider the expansion of the state’s sales tax to insurance products. The burden on Maryland families is too great.Al Redmer, Jr.

David M. Higgins II is an award-winning journalist passionate about uncovering the truth and telling compelling stories. Born in Baltimore and raised in Southern Maryland, he has lived in several East...