Deadline for Additional Savings through MA Paid Family & Medical Leave Private Plan Exemption is September 30, 2020

The submission deadline for applications for a private paid leave plan exemption is the last day of each quarter. If you previously applied, and were granted an exemption, you are already experiencing savings with your exemption through the waived requirement to contribute to the MA Family and Employment Security Trust Fund. The final opportunity to be exempt prior to the benefits being effective is September 30, 2020.

We recommend submitting for the exemption no less than one week in advance to ensure time for processing (September 22, 2020). Once approved, your organization will be exempt from contributions in the fourth quarter of this year and may enjoy additional savings in 2021 through a private plan option, depending on premium rates.

Private plans can be offered in either an insured or self-funded model. A private plan exemption can offer the employer a number of advantages over the public option:

• Ease of communication with employees/easier for employees to understand;
• Single claim filing for MA Paid Leave, Group STD, and Group LTD plans;
• Potentially lower costs when funding begins in CY2021 (Groups with 25 or more employees);
• Ability to customize plan to better suit needs of the employer;
• Streamlined plan administration;
• Integration with Absence Management Programs; and
• Exemption from contributions to the public trust fund for Q4 2020 for exemptions approved by September 30, 2020.

Your OneDigital advisory team is well educated in the private plan options that are available to your group. To take advantage of a private plan, you must act quickly in order to maximize the savings available to your organization. Contact your OneDigital Consultant and learn how you can take control of your PFML costs.