Delaware News

Delaware Brings Private Paid Family Medical Leave Policies to Market

Captive | Captive Insurance | Insurance Commissioner | Date Posted: Thursday, September 19, 2024


Official Seal of the Insurance Commissioner of Delaware

Insurers approved to offer plans with benefits equal to or greater than the forthcoming state plan

Insurance Commissioner Trinidad Navarro announced today that the Department of Insurance has approved Delaware’s first private Paid Family Medical Leave plans. These filings, reviewed by independent actuaries and against state requirements, provide options for businesses who wish to purchase compliant private coverage in lieu of participation in the state-administered plan. Eight plans from seven insurers have been approved, and 11 filings are in process.

“Today marks a milestone in our commitment to families and workers across Delaware. Paid family and medical leave policies offer our state not just ‘coverage,’ but the opportunity to convene a new culture, one of care and compassion. When life’s most important moments happen, these policies provide peace of mind, ensuring residents can focus on their families, not just their finances,” shared Commissioner Navarro. “That is why, from the first inklings of the Healthy Delaware Families Act to today, I have been proud to support and advocate for paid family and medical leave. In states with similar laws, we have seen private insurer offerings provide greater benefit to employees and businesses, including earlier availability of coverage, at a low cost. Insurers are very interested in providing this coverage, and we look forward to continuing to bring policies to the market that benefit employees and businesses alike.”

“With today’s announcement, the implementation of Delaware’s new paid family and medical leave law takes a big step forward,” said Sen. Sarah McBride, Senate prime sponsor of the enabling legislation. “This new competitive marketplace will offer Delaware’s businesses private plans that are similar to – or even more generous than – the public option, fostering a ‘benefits race to the top’ for our state’s families. I am so grateful for the exceptional work by the Insurance Commissioner and his office in implementing this law and facilitating this first wave of new private plans.”

Private plans can include all benefits required by law, a combination of required benefits, or a single component of medical leave, family caregiving leave, and/or parental leave. Plans must provide coverage at least equivalent to the plan operated by the Department of Labor (DOL), and employee costs may not be higher than the state program. No restrictions or conditions may be applied to benefits purchased privately that are not imposed by the state-administered plan. However, employers may find that benefits can be accessible more quickly or less expensively than the state plan, along with increased administrative ease for both contributions and claims management. An approved issuer list is posted on the Department of Insurance website, and will be updated as approvals are made.

Businesses that purchase private plan options may be eligible for exemption from the applicable contributions(s) to the state plan. Employers currently voluntarily offering related benefits to employees through short-term disability or other coverage should communicate with their insurer, as these policies may not be sufficient to comply with exemption requirements. The exemption process is managed solely by the DOL. Employers have until December 1, 2024, to notify DOL of their intention to utilize the private plan exemption through the Delaware LaborFirst platform.

For insurers: Filing Guidance Bulletin No. 144

For businesses: Department of Labor Paid Leave Website

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Delaware Brings Private Paid Family Medical Leave Policies to Market

Captive | Captive Insurance | Insurance Commissioner | Date Posted: Thursday, September 19, 2024


Official Seal of the Insurance Commissioner of Delaware

Insurers approved to offer plans with benefits equal to or greater than the forthcoming state plan

Insurance Commissioner Trinidad Navarro announced today that the Department of Insurance has approved Delaware’s first private Paid Family Medical Leave plans. These filings, reviewed by independent actuaries and against state requirements, provide options for businesses who wish to purchase compliant private coverage in lieu of participation in the state-administered plan. Eight plans from seven insurers have been approved, and 11 filings are in process.

“Today marks a milestone in our commitment to families and workers across Delaware. Paid family and medical leave policies offer our state not just ‘coverage,’ but the opportunity to convene a new culture, one of care and compassion. When life’s most important moments happen, these policies provide peace of mind, ensuring residents can focus on their families, not just their finances,” shared Commissioner Navarro. “That is why, from the first inklings of the Healthy Delaware Families Act to today, I have been proud to support and advocate for paid family and medical leave. In states with similar laws, we have seen private insurer offerings provide greater benefit to employees and businesses, including earlier availability of coverage, at a low cost. Insurers are very interested in providing this coverage, and we look forward to continuing to bring policies to the market that benefit employees and businesses alike.”

“With today’s announcement, the implementation of Delaware’s new paid family and medical leave law takes a big step forward,” said Sen. Sarah McBride, Senate prime sponsor of the enabling legislation. “This new competitive marketplace will offer Delaware’s businesses private plans that are similar to – or even more generous than – the public option, fostering a ‘benefits race to the top’ for our state’s families. I am so grateful for the exceptional work by the Insurance Commissioner and his office in implementing this law and facilitating this first wave of new private plans.”

Private plans can include all benefits required by law, a combination of required benefits, or a single component of medical leave, family caregiving leave, and/or parental leave. Plans must provide coverage at least equivalent to the plan operated by the Department of Labor (DOL), and employee costs may not be higher than the state program. No restrictions or conditions may be applied to benefits purchased privately that are not imposed by the state-administered plan. However, employers may find that benefits can be accessible more quickly or less expensively than the state plan, along with increased administrative ease for both contributions and claims management. An approved issuer list is posted on the Department of Insurance website, and will be updated as approvals are made.

Businesses that purchase private plan options may be eligible for exemption from the applicable contributions(s) to the state plan. Employers currently voluntarily offering related benefits to employees through short-term disability or other coverage should communicate with their insurer, as these policies may not be sufficient to comply with exemption requirements. The exemption process is managed solely by the DOL. Employers have until December 1, 2024, to notify DOL of their intention to utilize the private plan exemption through the Delaware LaborFirst platform.

For insurers: Filing Guidance Bulletin No. 144

For businesses: Department of Labor Paid Leave Website

image_printPrint

Related Topics:  , , , , , , , , , , , , ,


Graphic that represents delaware news on a mobile phone

Keep up to date by receiving a daily digest email, around noon, of current news release posts from state agencies on news.delaware.gov.

Here you can subscribe to future news updates.