1. A. The subsidy may not exceed the enrollee’s premium amount.
2. B. The subsidy shall be applied to the premium balance remaining after application of the Advance Premium Tax Credit.

3. C. Basis of Calculation.

   1. (1) For enrollees with a greater than 0 percent premium contribution based on the payment parameters set by the Board, the subsidy shall be calculated based on, and applied only to, the portion of premium allocated to essential health benefits.
   2. (2) For enrollees with a 0 percent premium contribution based on the payment parameters set by the Board, the subsidy shall also be applied to nonessential health benefits so that the enrollee’s total premium responsibility is equal to $0.
4. D. For plan years 2026 and 2027, the Board shall set the payment parameters for each plan year of the Program before December 31 preceding the applicable plan year.

Authority: Insurance Article §31-106(c)(1)(iv); Annotated Code of Maryland

Effective date:

Regulations .01 — .07 adopted as an emergency provision effective July 11, 2025 (52:16 Md. R. 845); adopted permanently effective October 13, 2025 (52:20 Md. R. 1003)