Delaware Brings Private Paid Family Medical Leave Policies to Market

September 19, 2024/Joe Ciccanti

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. Commissioner Navarro says paid family and medical leave policies offer Delaware not just coverage, but the opportunity to convene a new culture, one of care and compassion. He adds that when life’s most important moments happen, these policies provide peace of mind, ensuring residents can focus on their families, not just their finances.

Additional Information from the Delaware Department of Insurance:

“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