At a glance
What Maryland requires
Maryland permits fixed indemnity as a supplemental, limited-benefit product, but it layers specific requirements on these plans. Fixed indemnity is treated as an excepted benefit that pays a fixed dollar amount per period or per service, and it must come with a 14-point disclosure under Md. Insurance Article 15-1301(l)(2)(iv) so you can understand what the coverage does and does not pay before you buy. Under 15-1301(l)(2), fixed indemnity — along with limited-scope dental and vision and specified-disease/critical-illness coverage — is excluded from the definition of a "health benefit plan." The Maryland Insurance Administration (MIA) oversees these products.
A 2025 change is worth flagging: Senate Bill 211 (effective Oct 1, 2025) amended Maryland's definitions to conform to the federal CFR references. This is a conformity and streamlining measure that aligns Maryland's terms with federal definitions — it is not a ban on fixed indemnity, and these products remain available as supplemental coverage.
Because fixed indemnity is an excepted benefit, it sits outside ACA rules. (At the federal level, a 2024 fixed-indemnity consumer-notice requirement was vacated by a court in December 2024, so it is not federally required; an earlier 2014 individual-market notice still applies.)
The core thing to understand is how it pays: fixed indemnity pays a predetermined cash amount when a covered event happens — no matter what your treatment actually costs. That's very different from major medical, which pays a share of your actual bills.
How fixed indemnity works in Maryland
Fixed indemnity and related excepted benefits come in a few forms (described as coverage types, not specific products):
Each pays a fixed cash benefit you can use toward bills, deductibles, or everyday costs during a covered event. Because Maryland requires a 14-point disclosure, you'll have a document that spells out exactly what the plan pays — read it closely before you buy. These products are designed to supplement real coverage, not replace it. As an independent, carrier-neutral brokerage, we don't push any single insurer — and we'll be clear that fixed indemnity works best alongside a comprehensive plan, not instead of one.
How to get coverage here
Fixed indemnity isn't sold through the health insurance marketplace, and it isn't tied to Open Enrollment — you can generally apply for it year-round, directly from an insurer or through a broker, subject to the product's terms and Maryland's requirements.
For the comprehensive coverage that fixed indemnity is meant to supplement, Maryland runs its own state-based exchange, Maryland Health Connection, where ACA plans have an annual Open Enrollment (typically each fall through early winter) and Special Enrollment Periods for qualifying life events like losing job-based coverage, moving, or having a baby. Maryland has expanded Medicaid, so it's worth checking your eligibility there as well.
What it costs
We don't quote premiums here — prices depend on your situation — but the cost of fixed indemnity in Maryland is driven by:
Because fixed indemnity pays fixed amounts rather than a share of your bills, use the required 14-point disclosure to compare exactly what a plan pays — and remember it's supplemental, so weigh it alongside the cost of the comprehensive coverage it's meant to support.
Fixed indemnity insurance is a supplemental, limited-benefit (excepted-benefit) product. It pays fixed cash amounts for covered events regardless of your actual medical costs, is not major medical coverage, and is not minimum essential coverage under the Affordable Care Act. It does not cover the full range of essential health benefits and is not a substitute for a comprehensive health plan.
GetHealthPlans.com is operated by MTG Insurance Agency, an independent, carrier-neutral brokerage. We do not issue insurance and are not a government agency or the health insurance marketplace. Regulatory details on this page reflect Maryland law and Maryland Insurance Administration guidance as of the last-reviewed date and can change; confirm current terms and the specific product's approved form before you enroll.