Supporters of paid family and medical leave policy rallied on the steps of the Maine State House in June 2023. One month later the policy became law. (Courtesy of Maine Women’s Lobby)
There are now a dozen approved private insurance policies that employers can use as an alternative to the new state-sponsored paid family and medical leave plan.
There are now 12 certified, private insurance plans Maine employers can use to substitute the state’s paid family and medical leave program, according to a news release from the state Department of Labor Thursday. The list of approved plans can be found on the department’s website under the employer resources tab. It will be regularly updated as additional policy options are approved.
“We are excited to hit another major milestone for the program by certifying these policies for employers to have a choice of a plan that works best for them,” said the state’s Paid Family and Medical Leave Director Luke Monahan.
Employers who would like to use a private plan substitute can apply starting April 1 through the Maine Paid Leave Portal.
The approval of substitute plans marks the next step in the implementation of the state’s program to allow eligible public and private sector workers to take up to 12 weeks of paid leave for reasons such as illness, to care for a loved one or the birth of a new child. Employees are expected to be able to access the benefit starting May 2026.
Employers with at least one Maine-based employee were required to start making contributions into the system at the start of the year. This was meant to give time to build up the fund before employees start accessing the benefit.
However, there are multiple bills before the Legislature this session seeking either to amend or repeal the program. The Legislature’s Labor Committee is expected to hear at least two bills calling for the program to be repealed. Another bill wants to remove the provision that paid leave must be scheduled to prevent undue hardship on an employer.
Under Maine’s paid family and medical leave law, employers may apply to use a private or self-insured plan as a substitute to the state’s program as long as the policy includes the rights, protections and benefits equivalent to those provided under the law. The Maine Department of Labor adopted rules to determine whether a plan is “substantially equivalent” to the state law.
For the substitute plans, the department worked with the Maine Bureau of Insurance to develop a checklist to review alternative insurance policies to ensure they meet all requirements and act as a viable stand-in for what’s provided in state law. The department also created a detailed guide outlining the substitution process.
In addition to the private plan substitutions, employers can satisfy the requirements outlined in the paid leave law by offering a self-insured plan that isn’t through an insurance carrier. Self-insured plans will also be reviewed to certify it is comparable enough to the state’s plan.
The department also created a guide for the self-insurance application process.
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