Private paid family and medical leave insurance plans hit the market ahead of Delaware opening its statewide program.
With the passage of State Sen. Sarah McBride’s (D-Wilmington) Healthy Delaware Families Act in 2022, Delaware is required to implement a state-sponsored paid family and medical leave insurance policy for employers across the state.
The state Department of Insurance announces it has approved eight plans from seven insurers, providing options for businesses to choose in lieu of using the state plan.
McBride says this is a huge win for the program and could provide more than the baseline of having access to up to 12 weeks of paid time to care for a new child, care for yourself or family member with serious illness or injury or assist while loved ones are on overseas military deployment.
“They can also provide even more generous benefits to employees than the public option. The public option is sort of a floor — a minimum requirement — and these plans can build off of those requirements to provide even more to workers and their families," McBride said.
Employers must be in compliance with the new law by Jan. 1, 2026, and Director of the Division of Paid Leave Chris Counihan says private options expand ways for businesses to meet the requirement.
“This really is a great way for employers to have more ways to provide the coverage to their employees, which is the main goal — that the employees get the best coverage possible."
Under the law, employees will receive up to 80% of their wages during their leave, up to $900 a week. Employees are limited to a maximum of 12 weeks of total, combined leave per year.
The program will be funded by less than 1% of an employee’s weekly salary, and employers can require employees to contribute up to half the cost.
Private 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.
Employers have until Dec. 1, 2024, to notify DOL of their intention to utilize the private plan exemption.
