Maryland Department Of Labor Family and Medical Leave Insurance

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.