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SB 890MARYLANDSession 2026State BillSigned into law

Enacted

Maryland exempts nonprofit hospital and health care system captive insurance from premium receipts tax and mandates a study

Original title: Insurance - Captive Insurers - Premium Receipts Tax Study

Last action · May 26, 2026: Approved by the Governor - Chapter 638Sponsor: Dawn Gile

Companion · HB 1228same policy, House version

Bill progressHistory & official text ↓

Introduced

Committee

Floor Vote

Passed

Law

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Public stanceCommunity reactions are separate from the official record and reporting.

What This Bill Does

Maryland law exempts lawfully procured by nonprofit hospitals and health care systems from the State insurance , waives retroactive tax liabilities and penalties, and requires the Maryland Insurance Administration to study captive insurance utilization and report its findings by January 1, 2027.

Why it matters

Nonprofit hospitals and health care systems in Maryland are relieved from paying a 3% tax and associated penalties on certain premiums, while state regulators must evaluate broader captive insurance taxation and regulatory frameworks.

Who It Affects

Groups the bill's text affects, as described in the record. Being affected is not a position for or against it.

Directly affected

Nonprofit hospitals and health care systems in Maryland

Exempted from the State insurance premium receipts tax on lawfully procured captive insurance and relieved of retroactive tax liabilities and penalties.

Directly affected

Maryland Insurance Administration

Required to conduct a comprehensive study on captive insurance, maintain confidentiality of submitted data, and report findings by January 1, 2027.

Key Facts

You don't have to trust us. Each fact below is taken straight from the official document - click any one to see the exact passage, highlighted in the original.

Frequently Asked Questions

Which organizations are exempt from the captive insurance premium receipts tax?

Nonprofit health care systems located in Maryland (including parent entities, subsidiaries, and constituent health care providers) and nonprofit hospitals located in the State are exempt.

What happens to past-due taxes and penalties accrued before the law takes effect?

The Maryland Insurance Administration is prohibited from charging or collecting the , fees, penalties, or interest accrued before the effective date of the Act from exempt nonprofit entities for lawfully procured .

When is the study on captive insurance due?

The Maryland Insurance Administration must report its findings and recommendations to the Governor and relevant legislative committees on or before January 1, 2027.

What else do you want to know?

News Coverage

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Where This Stands

Current status: Signed into law.

Procedural history

28 actions

May 26, 2026Governor of MarylandEnrolled
Approved by the Governor - Chapter 638
Apr 13, 2026SenateFloor
Passed Enrolled
Apr 13, 2026SenateFloor
Third Reading Passed (45-0)
Apr 13, 2026SenateFloor
Senate Concurs House Amendments
Apr 13, 2026HouseFloor
Third Reading Passed (137-0)
Apr 10, 2026HouseFloor
Second Reading Passed with Amendments

Show 22 earlier actions

Apr 10, 2026House
Favorable with Amendments { 983824/1 Adopted
Apr 10, 2026HouseCommittee
Favorable with Amendments Report by Ways and Means
Apr 6, 2026House
Hearing 4/08 at 1:00 p.m. (Ways and Means)
Apr 6, 2026HouseCommittee
Rereferred to Ways and Means and Health
Apr 2, 2026House
Hearing canceled
Apr 1, 2026House
Hearing 4/06 at 2:00 p.m.
Mar 31, 2026HouseCommittee
Referred Rules and Executive Nominations
Mar 30, 2026SenateFloor
Third Reading Passed (43-0)
Mar 26, 2026SenateFloor
Second Reading Passed with Amendments
Mar 26, 2026Senate
Floor Amendment { 523529/1 (Senator Gile) Adopted
Mar 26, 2026Senate
Motion Special Order until 3/30 (Senator West) Rejected
Mar 26, 2026Senate
Floor Amendment { 523529/1 (Senator Gile)
Mar 26, 2026Senate
Favorable with Amendments { 133420/1 Adopted
Mar 25, 2026SenateFloor
Motion Special Order until 3/26 (Senator Gile) Adopted
Mar 25, 2026Senate
Favorable with Amendments { 133420/1
Mar 23, 2026SenateFloor
Motion Special Order until 3/25 (Senator West) Adopted
Mar 23, 2026Senate
Favorable with Amendments { 133420/1
Mar 23, 2026SenateFloor
Motion Laid Over (Senator West) Adopted
Mar 23, 2026Senate
Favorable with Amendments { 133420/1
Mar 23, 2026SenateCommittee
Favorable with Amendments Report by Finance
Feb 11, 2026Senate
Hearing 2/25 at 1:00 p.m.
Feb 6, 2026SenateIntroduced
First Reading Finance

Version history

Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.

View official text →

Lobbying Activity

No state lobbying filings in our records match this bill. Federal lobbying reports (LDA) cover Congress, so they are not listed on state bills.

Full breakdown

Who this bill affects and the strongest case for and against it, written only from the bill’s own text.

Discoveries

1 pattern noticed across the record

Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.

policy shift98% confidence

Retroactive Tax Relief for Nonprofits

The legislation not only exempts future captive insurance premium receipts from taxation but also prohibits the collection of past-due taxes, fees, penalties, and interest, applying retroactively to existing liabilities.

Maryland Insurance Administration Attorney General

Connected Entities

Attorney General, House Health Committee, Governor and 2 more

PersonAttorney General“Empowered to recover unpaid taxes upon request of the Commissioner.”Map →

OrganizationHouse Health Committee“Receives the study report from the Maryland Insurance Administration.”Map →

PersonGovernor“Receives the report and recommendations from the Maryland Insurance Administrati”Map →

OrganizationSenate Finance Committee“Receives the study report from the Maryland Insurance Administration.”Map →

OrganizationMaryland Insurance Administration“Tasked with conducting a study on captive insurance and receiving confidential d”Map →

Sources

Open source document

mgaleg.maryland.gov

Analysis Score

0–100

Significance65
How much this matters to a regular citizen
Controversy25
Intensity of disagreement among stakeholders
Entertainment5
Compellingness for a non-policy-wonk reader
Buzz20
Current news / social attention level

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