The new product was designed following the state’s new legislation which requires that all employers in Massachusetts make paid family and medical leave coverage available for every worker. The legislation, MGL c.175M, establishes a system for paid family leave of up to 12 weeks to care for a relative and up to 20 weeks for an insured’s own illness, with benefits beginning in 2021.

By default, all employees in Massachusetts will be enrolled in the state-sponsored PFML coverage. Employers and employees participating in the state-sponsored coverage are required to submit contributions to the state (through payroll deductions) starting in the fourth quarter of 2019; the state’s benefits program takes effect January 01, 2021.

Arch’s new product is a private plan that meets the state’s criteria for PFML; employers who purchase the product can file for an exemption from the state-sponsored plan and eliminate the need to contribute to the state fund.

“Our new plan is an excellent alternative to the Massachusetts state sponsored plan,” commented Arch Insurance vice-president of accident & health Thomas Foschino, adding that Arch has experience offering similar plans in other states.

A company release said that applications for exemption from Massachusetts’ PFML plan must be approved by December 20, 2019.