WILMINGTON – Delaware Insurance Commissioner Trinidad Navarro has approved private Paid Family Medical Leave plans with seven insurers under review.
The announcement marks the first private plans to be accepted in the First State with 14 weeks left for Delaware business owners to decide their next steps regarding paid family leave program. Business owners have three options to choose from before December 31, 2024 – file for an exemption, get a private plan or join a government program.
Navarro has accepted private plans for the following companies: Hartford Life and Accident Insurance Company, Life Insurance Company of North America, Metropolitan Life Insurance Company, Principal Life Insurance Company, ShelterPoint Life Insurance Company, Sun Life Assurance Company of Canada and United of Omaha Life. An insurance company.
Another 11 letters of private plans are in the works, according to the Delaware Department of Insurance.
“In countries with similar laws, we’ve seen private insurance offerings offer many benefits to workers and businesses, including early access to services at lower costs,” Navarro said in a statement. prepared. “Insurers are very interested in providing this coverage, and we look forward to continuing to bring policies to market that help workers and businesses alike.”
In 2022, Sen. Sarah McBride (D-Wilmington) proposed the paid family leave bill after a long campaign across the state to hear from business leaders and citizens alike. Governor John Carney signed the bill into law that year, creating a program that would provide 12 weeks of paid parental leave and six weeks of medical and caregiving leave.
The program is funded by an additional tax of 0.8% from the employee’s weekly salary; Employers can split the employee up to half of the cost. The 0.8% tax comes out to $4 for every $1,000 spent. Tax collection for those who choose to enroll in the national program will begin on January 1, 2025.
Those that employ nine or fewer people are exempt and businesses that employ between 10 and 24 people will only be required to provide paid parental leave. According to previous estimates from the Department of Labor, a quarter of employers, or 8,470, in the district have between 10 and 49 employees.
Eligible workers can begin applying for the federal program, up to 80% of their wages or up to $900 per week, in January 2026.
Under Delaware law, private plans must provide the same coverage as the state and employee costs may not be higher than the state program. However, private plans may include all benefits, a combination of benefits or just one portion of medical leave, family care leave or parental leave as appropriate for each company.
McBride celebrated the news from Navarro’s office, noting that paid family and medical leave for Delawareans has been extended.
“This new competitive marketplace will offer private plans for Delaware businesses that are similar to — or more generous than — the public option, encouraging a ‘benefits race to the top’ for families of our state. I am very grateful for the exceptional work of the Insurance Commissioner and his office to implement this law and to facilitate this first wave of new private plans,” he said.
The Delaware Department of Labor continues to communicate with businesses about the paid leave program, including a series of webinars. The next webinar is scheduled for Oct. 17. Registration can be found at labor.delaware.gov/delaware-paid-leave-is-coming/
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