Could You Go 40 Days Without Being Paid?

Your PFML Options.

Can your employees go 40 days without receiving income? Did you know Massachusetts’ Paid Medical Family Leave (PFML) on average takes 40 days from filing date to payment?

The Paid Family Medical Leave Act (PFML) is now law. It is a new employee benefit that businesses and employees contribute to. The fund is used to pay eligible Massachusetts residents a qualified work leave not covered by a short-term disability policy. Starting Jan. 1, 2021, employees in Massachusetts can apply for and receive paid leave under the state’s new PFML law. Most Massachusetts workers will be eligible to take up to 26 weeks of paid leave per benefit year under the new law. Year-to-date approximately 30,000 claims have been filed, however only about one-fourth have started to receive the benefit, and none in a timely fashion. The typical wait time is five to six weeks. In theory, PFML is a great benefit, however, the untimely claim process has adversely impacted employees.

The state fund is not an employer’s only choice. Did you know other options exist? Private insurers offer the same coverage benefit with a more competitive rate, easier administration, and faster claim payments.

You may want to consider purchasing PMFL coverage from the private market for the following reasons:

1) Better pricing: private insurers' rates are more competitive. Massachusetts has already announced a rate increase effective October 1, 2021.
2) Claim payment turnaround of 5 days versus the state average of 40-days.
3) As an employer, get faster claim service for less money and help your employees should they need to apply for this benefit.

To learn more, please contact me: Gabriel DeSouza, 800-800- 8990; gabriel@riskadvice.com