Paid Family and Medical Leave went into full effect in January 2021 and benefits were fully rolled out by July 1, 2021. As of last summer, any eligible employees could file a claim to receive benefits. Maximum leave time varies depending on the reason for leave.
Qualified employees could receive:
- Up to 20 weeks off for a serious health condition
- Up to 12 weeks for birth, adoption or new foster event within the first year
- Up to 12 weeks to care for a family member with a serious medical condition
- Up to 12 weeks related to the deployment of a family member in the military
- Up to 26 weeks to care for a family member with a serious health condition who is in the military
Although it was optimal for employers to privatize Massachusetts PFML benefits within the first year in order to avoid pre-paying their first year of premiums to the State Fund, there’s still plenty of opportunities to make the switch for 2023.
As Fall approaches, it’s the perfect time for New England insurance brokers to approach current clients and new business, alike, to share the tremendous advantages of privatizing Massachusetts PFML.
Identify Your Warm Market for PFML
While you should always be prospecting for new business, it makes sense to reach out to your clients who already trust you and rely on you for other lines of coverage. You may be able to help them save money by bundling statutory PFML in Massachusetts with voluntary worksite benefits and ancillary benefits.
First, identify your clients mandated to provide PFML coverage to their employees. This includes any organization with more than 25 covered workers. Covered workers include all W-2 employees, regardless of part-time or full-time job status and any 1099 contractors in an organization with a workforce made up of more than 50% independent contractors.
Businesses with less than 25 lives can also offer PFML to employees on a voluntary, employee-funded basis.
Share the Advantages of Private PFML
Once you’ve identified clients who already write their health insurance, life insurance and other ancillary benefits, or voluntary worksite benefits such as accident insurance, through your agency, remind them that it’s almost time to renew their statutory PFML coverage for 2023.
If they have a policy with the state, they may have experienced claims delays, slow customer service, or a lack of flexibility in how they receive payments. Or maybe they are just wondering if they can find a lower rate with a private policy.
Private PFML policies in Massachusetts must provide benefits equal to or better than the state plan, with the same or greater duration, at premiums equal to or lower than the state plan.
In our experience, private plans have delivered better customer service and more flexibility at rates equal to or less than the state plan. Plus, clients can save money by bundling other benefits with their PFML policy.
All you need to write their policy is a census of lives in the organization, male and female, plus their salaries. Private plans must be approved by the state, so it’s a good idea to start providing quotes now in time for the January 1, 2023 deadline.
Demonstrate Your Expertise
By relying on The DBL Center as your back-office staff, you can share your knowledge as an expert in Paid Leave. Since New York introduced the groundbreaking PFL Act in 2017, The DBL Center has led the way in statutory paid family and medical leave.
Our partnerships with carriers that write paid family and medical leave in a growing number of states help us provide the lowest premiums and greatest options in statutory, ancillary, and voluntary benefits.
Your access to our Broker Dashboard: Net Revenue Tracker makes it easy for you to let your customers know when their renewal is due, helping you to better manage cash flow and track commissions along with renewals and cancellations.
Reach Out to New Clients
New businesses open every day in Massachusetts, and many don’t understand the complicated process of statutory employee benefits. Use multiple marketing tactics, including direct email, social media advertising, paid search, and local networking to find new businesses and start the important conversation about statutory benefits with them.
The same goes for attracting businesses who have been around a while but may not realize how much your insurance agency can offer them. Today’s company owners and benefits managers are more demanding than ever before when it comes to receiving the best customer service. They want an insurance broker who has their best interests at heart and can help identify gaps in coverage that could be hurting their business – and their bottom line.
The DBL Center has the tools, resources, knowledge, and industry connections that can help you set your insurance brokerage apart.
New England brokers have the unique opportunity to discover what New York tri-state area brokers have known for years; statutory benefits are a great way to expand your book of business, build relationships, and open the door to commission-boosting ancillary benefits.
At The DBL Center, we are always here to help you build your reputation as a statutory benefits expert.
