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Maine Paid Family Leave

April 27, 2024

Maine Paid Family and Medical Leave

Unlocking the Potential: Privatizing PFML in Maine for Business Owners and Insurance Brokers

Increasingly, state governments are introducing paid family leave programs to help support working parents or those who have to care for ill or aging family members. Many states include medical leave for workers in these programs, too.

On July 11, 2023, Maine governor Janet Mills signed a Paid Family and Medical Leave program into law. Maine PFML is set to begin in 2026, with contributions to start in January 2025.

As the 13^th state to introduce some form of required paid family and medical leave, Maine legislators have several blueprints to follow regarding the rules, contributions, and qualifications.

Why PFML Matters to Business Owners in Maine

Nearby Massachusetts successfully implemented a similar paid family and medical leave program in January 2021. Connecticut also has a plan in effect, which started paying benefits to eligible employees in January 2022.

Neighboring New Hampshire was the first in the country to implement a voluntary Paid Family and Medical Leave plan (NHPFML). With other New England states mandating PFML, New Hampshire employers who don’t offer the benefit may put themselves at a severe disadvantage when it comes to attracting, retaining, and hiring employees at every level.

The new legislation in Maine will make the state more competitive when it comes to attracting talent in the New England region.

Choices for Maine Business Owners Mean Opportunities for Insurance Brokers

Unlocking the Potential: The Case for Privatizing PFML in Maine

It’s important to emphasize that this is a statutory benefit, so employers who meet certain criteria must provide this benefit to workers, most likely on a shared-cost basis. (Although the state of Maine has not yet worked out these details, it is likely to follow the format of other state-mandated PFML programs across the U.S.)

Even so, business owners have choices when it comes to their PFML insurance carrier.

As in Connecticut and Massachusetts, business owners in Maine have the option of privatizing PFML to enjoy the benefits of:

Faster, more flexible payouts
Better service
Cost savings

But, as with businesses in other states that introduced similar programs, Maine business owners may not understand the tremendous benefits of privatizing PFML rather than purchasing their benefits through the state.

Why Choose The DBL Center for Maine Paid Family Leave

Empowering Brokers: Delivering Savings and Service Excellence in PFML

Since 2017 when New York introduced Paid Family Leave as a rider to its statutory short-term disability program (NYS DBL), our company has helped thousands of brokers deliver the lowest premiums and best service for paid family leave benefits and claims.

By leveraging our relationships with top carriers, we secure the best prices for our brokers, who pass that savings on to their clients. Often, business owners opt to put that money into ancillary benefits, such as voluntary worksite benefits, dental, vision, or group life/AD&D.

This provides added profit potential for brokers and builds stronger relationships with their clients. When you, as the broker, can act as a trusted resource for everything related to employee benefits, you can create customers for life.

Key Features of Maine’s PFML Program

Anticipating Maine PFML: What to Expect Before 2025

Because the program does not go into effect until January 1, 2025, when Maine business owners must start paying premiums to the Maine state department of labor or show proof of a private plan, the state has not yet released the specifics of the plan.

If Maine follows other New England states, the benefit could be capped somewhere between $900 and $1,100 per week for up to 12 weeks.

Right now, the Maine Department of Labor website says the benefit is available to parents following the birth of a child, caregivers with an ill or injured family member, or employees who are suffering an illness or injury not incurred on the job. We can expect the state to share more details prior to January 2025.

Privatization Options

Privatized PFML: Leveraging Benefits for Maine Businesses

Most states that allow privatized benefits require that the benefits are the same or equal to those provided by the state at the same cost or lower. Insurance carriers will be prepared to share robust benefits packages that can save Maine business owners money while providing more personalized service.

You can rely on The DBL Center to act as your white-label, back-office staff and administrator. We provide the reports and data you need to show your clients the advantages of privatizing PFML and bundling other benefits packages, too.

Conclusion

As Maine business owners begin to grapple with the added cost of PFML, insurance brokers are well-poised to act as a trusted resource. The DBL Center team has the knowledge and experience you need to introduce this crucial required benefit to your clients.
Contact us to join our network of trusted brokers delivering lower premiums and better service while growing their book of business.

Frequently Asked Questions

What is Maine PFML?

Maine PFML is the state’s statutory paid family and medical leave program, offering workers of up to 12 weeks paid leave to care for an ill relative, for the birth of a child, or for their own, non-work related illness or injury.

Who Can Claim Maine PFML?

Maine PFML is expected to be available for all full-time, eligible workers at qualifying companies in the public or private sector.

If Maine follows the standards of other paid family and medical leave programs in New England, Maine employees will be entitled to up to 12 weeks of paid leave to care for a child in its first year of life, adoption, or under foster care, or to care for a sick or disabled family member. They can also take up to 12 weeks’ leave for their own non-work-related illness or injury.

How are Benefits Calculated in Maine’s PFML?

The benefit amount and premium cost has not yet been set for Maine PFML. The details of Maine PFML should be available before January 1, 2025, when the initial rules and premium costs must be adopted by Maine’s Department of Labor.

What are the Advantages of Privatizing Maine PFML with DBL Center?

When insurance brokers help business owners privatize required benefits through The DBL Center, they can enjoy tremendous cost savings. In other states, businesses can save 15% to 20% on required benefits. They can use that savings to bundle other ancillary and voluntary worksite benefits to create more enticing packages for employees.

Plus, The DBL Center offers our brokers white-label, white-glove service for their clients and access to our Broker Dashboard: Net Revenue Tracker, an industry-first app that allows you to track commissions, renewals and cancellations with a click.

How does Maine PFML Work with Other Benefits?

In most states, you cannot take sick leave and PFML concurrently. The Maine Department of Labor will release the rules for Maine PFML on or before January 1, 2025. You can subscribe to The DBL Center newsletter to stay up to date on the latest developments in Maine PFML.

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