How MA Paid Family & Medical Leave Contributions Work for Private Plans
Fully-insured private plans are underwritten by insurance carriers and rates are not tied directly to the State plan rate — they 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, pick up all of a portion of the employee share of contributions).
Employers with approved private plans are exempt from remitting contributions to the State Fund, and would instead remit contributions to their private plan.
Want to see about how much PFML will cost? Estimate your PFML contributions here .
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.