Understanding Options for Private PFML Plans [Seminar]

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RogersGray

63 Smiths Lane

Kingston, MA 02364

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Private PFML coverage is now an option in the Massachusetts marketplace. Join us for this month's seminar as we discuss the benefits.

About this Event

Beginning Oct. 1, 2019, most Massachusetts employers will be required to make payroll withholdings on behalf of their workforce in compliance with the Paid Family and Medical Leave law. As the PFML contribution deadline nears, private carriers have emerged to provide alternative cost-saving solutions to the state's plan.

If you are an employer with 25 or more W2 employees (FT or PT), you have the ability to price out a Private Paid Family & Medical Leave policy with a fully insured carrier prior to the deadline for contributions.

Jeff Bastien of RogersGray will lead the discussion on the potential benefits of a private plan, including:

Cash Savings

  • State Plan: 10/1/19-12/31/20 – Employers will be sending 0.75% of payroll contributions (roughly evenly split between employee/employer) for the 15 months prior to 1/1/21 to the state to build claim reserve fund.
  • Private Plan: 10/1/19-12/31/20 – Employers will be sending $0 to carrier/state; Contributions start when benefits start 1/1/21.

Administrative Burden

  • State Plan: Trying to coordinate benefits with in-force lines of coverage (Short- and Long-Term disability) will be a challenge as both employees and employers will need to understand how and where to file claims. Potential for 2 different claim forms filed in 2 different areas, confusion over who pays first, could they both pay, etc. Uncertainty surrounding processes as state needs to hire employees to handle claims, billing, etc.
  • Private Plan: Administratively it makes sense to bundle PFML with other in-force disability policies to allow private carriers to handle coordination of benefits. One claim form and carrier adjudicates what policy pays based on policies in force; employer not making that determination.

Jeff will also address the current PFML environment and future stability, timelines for exemption applications, eligibility and employer responsibilities and an overall Q&A on the MA PFML.

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RogersGray

63 Smiths Lane

Kingston, MA 02364

View Map

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