Delaware approves first private paid leave plans

WILMINGTON — Delaware Insurance Commissioner Trinidad Navarro has approved the eight private Paid Family Medical Leave plans with seven insurers with more currently under review.

The announcement marks the first private plans to be approved in the First State with 14 weeks left for Delaware business owners to decide on their next moves regarding the paid family leave program. Business owners have three options to choose from before Dec. 31, 2024 — file for exemption, find a private plan or join the state’s program.

Navarro has approved private plans for the following companies: Hartford Life and Accident Insurance Company, Life Insurance Company of North America, Metropolitan Life Insurance Company, Principal Life Insurance Company, ShelterPoint Life Insurance Company, Sun Life Assurance Company of Canada and United of Omaha Life Insurance Company. 

Another 11 filings for private plans are in the process, according to the Delaware Department of Insurance.

“In states with similar laws, we have seen private insurer offerings provide greater benefit to employees and businesses, including earlier availability of coverage, at a low cost,” Navarro said in a prepared statement. “Insurers are very interested in providing this coverage, and we look forward to continuing to bring policies to the market that benefit employees and businesses alike.”

In 2022, Sen. Sarah McBride (D-Wilmington) proposed a paid family leave bill after a long campaign throughout the state to hear from business leaders and residents alike. Gov. John Carney signed the bill into law that year, setting up a program that would offer 12 weeks paid parental leave and six weeks of medical and caregiving leave.

The program is supported through an added 0.8% tax deriving from an employee’s weekly pay; employers can possibly split up to half the cost with the employee. The 0.8% tax comes out to $4 for every $1,000 spent. Tax collection for those who opt to enroll in the state’s program will start on Jan. 1, 2025.

Those who employ nine people or less and seasonal operations are exempt and businesses who employ between 10 and 24 people will only be required to offer paid parental leave. According to previous estimates from the Department of Labor, a quarter of employers, or 8,470, in the state have between 10 and 49 employees.

Employees who qualify can start to file claims for the state program, up to 80% of their wages or up to $900 per week, in January 2026.

Under Delaware law, private plans must provide coverage equal to the state and employee costs may not be higher than the state program. However, private plans can include all benefits, a combination of benefits or a single component of medical leave, family caregiving leave or parental leave to best suit each individual company.

McBride celebrated the news from Navarro’s office, noting that paid family and medical leave for Delawareans has taken a leap forward.

“This new competitive marketplace will offer Delaware’s businesses private plans that are similar to  — or even more generous than  — the public option, fostering a ‘benefits race to the top’ for our state’s families. I am so grateful for the exceptional work by the Insurance Commissioner and his office in implementing this law and facilitating this first wave of new private plans,” she said. 

The Delaware Department of Labor is continuing outreach with businesses on the paid leave program, including a series of webinars. The next webinar is scheduled for Oct. 17. Registration can be found at labor.delaware.gov/delaware-paid-leave-is-coming/