Arch offers paid family medical leave product in Massachusetts

Arch Insurance has developed a paid family medical leave (PFML) product for employers in Massachusetts, in response to new state legislation requiring all employers make available paid family and medical leave coverage for every worker in the state.

The legislation, which was announced recently, establishes a system for paid family leave of up to 12 weeks to care for a family member, and up to 20 weeks for an insured’s own illness.

It means all people who work in Massachusetts will automatically be enrolled in the state plan for PFML coverage. Employers and employees participating in the state-sponsored coverage are required to submit contributions to the state, via payroll deductions, starting in Q4 2019. Benefits will begin on January 1, 2021.

Arch’s private PFML product, underwritten by Arch Insurance Company, will allow employers to file for an exemption from the state sponsored plan, eliminating the need to submit employer and employee contributions to the state fund.

To be exempt from contributions for Q4 2019 and after, applications must be approved by December 20, 2019.

Thomas Foschino, Arch’s vice president of accident and health, said: “Arch Insurance has experience with similar plans in other states.”