Maine’s Paid Family and Medical Leave (PFML) program has certified 12 insurance policies for use as private plan substitutions. For Maine employers considering alternatives to the state-run PFML program, this announcement provides new options to tailor benefits that best suit their business and employees.
What This Means for Employers
Under the PFML law, employers can apply for a substitution using a private insurance policy, provided it offers rights, protections, and benefits that are substantially equivalent to those under the state plan. The Maine Department of Labor (DOL) and the Bureau of Insurance (BOI) collaborated to establish a certification process ensuring compliance with state regulations.
Two Options for Private Plan Substitutions
Employers have two pathways to meet PFML requirements through private plans:
- Fully Insured Private Plans – These are policies purchased through an insurance carrier. As of this writing, the BOI has certified 14 such policies, ensuring they meet both insurance regulations and PFML requirements.
- Self-Insured Plans – Employers can also opt for a self-insured plan, which they administer directly. These plans must also be certified to ensure they offer substantially equivalent benefits.
A list of approved and certified insured plans is available here.
How to Apply
Employers looking to implement a private plan substitution can begin the application process starting April 1, 2025, via the Maine Paid Leave Portal. The list of approved insurance policies will be regularly updated under the DOL’s employer resources page.
Stay Informed
For additional details on the PFML law and private plan options, refer to the Maine PFML statute. Employers can also follow program updates on Instagram or reach out to the Maine Department of Labor with any questions. This certification marks an important step in giving Maine employers greater flexibility in meeting PFML requirements.
Holly Ferguson is a principal at ARB and the Practice Leader of the firm’s Accounting & Attest, Manufacturing, and Credit Union Services Teams. She provides industry-specific services for manufacturers, distributors, credit unions, businesses, and nonprofit organizations. Throughout her career, Holly has provided manufacturers with financial reporting consulting services, assisted with transactional accounting and consulting related to business acquisitions/sales, and analyzed implications and strategic implementation of new accounting standards. She is the former Treasurer on the Board of Directors and Finance Committee of the Manufacturers Association of Maine.
