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Paid leave bill would route states through private partners
The Senate measure, S.5017, sets a three-year $1.5 million to $7 million per state grant program and defines qualifying partnerships as including private insurers handling claims or benefit administration.
A bipartisan paid leave bill moving through Congress would require states to use public-private partnerships to administer benefits, putting private insurance companies in a central role for paid family and medical leave (PFML) programs. Insurance Business reports that the Senate bill, S.5017, includes language that does not appear in recent major federal paid leave proposals.
The bill would not create a national PFML program. Instead, it establishes a three-year grant program administered by the Department of Labor, with competitive awards of $1.5 million to $7 million per state, according to the article.
To receive funding, a state would need to offer at least six weeks of leave tied to at least one qualifying reason under the Family and Medical Leave Act (FMLA), using a public-private partnership model. The measure defines a qualifying partnership as a state arrangement with at least one private entity, which could include an insurance company administering benefits, the application process, or claims, while states could also allow employers to self-administer.
The article notes that the American Council of Life Insurers has signaled support, citing coverage figures and recent payout levels. It also says about 27 states currently have no paid family leave program, and points to state-level momentum such as Maryland opening private paid-leave filings in June with a September 30 cutoff for carriers to file forms and rates for private plans employers can buy instead of a state-run program.