How MA Paid Family & Medical Leave Contributions Work for Fully Insured Private Plans
Fully insured Private Plans are underwritten by insurance carriers — their rates can be lower or higher than the State Plan rate.
However, a Private Plan must not cost employees more than they would be required to contribute for the State Plan.
So, for a fully insured Private Plan the maximum employee contribution would be the lesser of:
- the maximum employee contribution set by the State, or
- the Private Plan rate if lower
- Remember, employers cannot profit from providing PFML coverage to their employees!
If the Private Plan rate is higher than the State rate, the employer would be required to fund the portion of the rate that exceeds the maximum employee contributions amount (plus any portion of employee contributions they would like to cover—since an employer may, at their discretion, contribute all or a portion of the employee share of the premium).
Employers with approved Private Plans are exempt from remitting contributions to the State Fund and would instead remit contributions to their Private Plan.
Private Plan Considerations
Price is not the only factor in choosing a fully insured Private Plan for your business. There are other considerations, such as experience and scalability – which translate into fast turnaround times for claims processing, and smooth service.
Learn more about Private Plans and how to make the switch here.