Private plans are not on the market yet. The Division will release more information about the application process when a market for private plans is established in Maryland. Because private plans will not yet be available when contributions begin, the Division will open a Declaration of Intent (DOI) process in May 2025. At that time, employers will be able to submit a DOI to notify the Division that they intend to offer a private plan. If an employer's DOI is accepted, they will not contribute to the State Plan for the quarters the DOI is in effect. If the employer does not ultimately offer a private plan, they will be responsible for all contributions that would have been due, in addition to interest charges. |
Self-insured plans
Employers with 50 or more employees that provide benefits equal to or better than the State Plan will be able to apply to be self-insured. The leave package will need to be approved by the Department and meet every element of the FAMLI program. The employer will need to demonstrate the plan is financially solvent.
Contribution rates
While the Department of Labor sets the contribution rate for the State Plan, private plans will set their own rates. Workers cannot be charged more in a private plan than they would be through the State Plan.
Employers in the State Plan will not be charged more depending on worker usage. Private plans may be structured differently.
Fees to apply for a private plan
There is a fee to apply for a private plan. The fee varies depending on whether you apply for a commercial or self-insured plan. The application fee for a commercial plan ranges from $100-$1,000. The exact cost depends on employer size. The application fee for a self-insured plan is $1,000.
Reporting requirements
Employers with private plans will be required to electronically submit wage and hour reports, as well as claims data, every quarter. Employers can face consequences if they submit incorrect, late, or incomplete data.
Processing claims and benefits
The administrator of the plan, either the insurance company or the self-insured employer, will handle claims and benefits. Regardless of what plan employers participate in, the State will handle appeals.
Leaving a private plan
Employers will be able to leave a private insurance plan after a period of one year. The new plan will not take effect until the beginning of the next quarter. There can be no gap in coverage.
The Division will be able to cancel an employer’s private plan if it determines the plan is not meeting the requirements. This is called involuntary termination. Involuntary terminations can result in fees and penalties.
