American Council of Life Insurers Encourage Employer Incentives to Enhance Availability of Paid Family Medical Leave

WASHINGTON, May 8 -- The American Council of Life Insurers issued the following news release:

American Council of Life Insurers (ACLI) President & CEO Susan Neely today urged Congress to provide incentives to employers to expand paid family and medical leave (PFML) programs at the workplace.

"Paid family medical leave is an issue that is catching fire in America today because of its profound implications for families' financial security and well-being," Neely said in connection with the U.S. House Ways & Means Committee hearing, "Paid Family and Medical Leave: Helping Workers and Employers Succeed."

"Incentives for employers will leverage the benefits already being provided by many employers through insured and self-funded plans. They will efficiently and effectively expand that coverage to more working Americans," Neely said in a statement to the committee.

"Private disability income insurance offered by life insurers is the most common form of income protection for workers--allowing millions of American workers to maintain their income when a medical condition or the birth of a child keeps them out of the workplace," she said.

In 2017, the private employer-based system paid American workers approximately $4.6 billion in short-term benefits. Twenty-five percent of all short-term disability claims are related to pregnancy and maternity.

"Forty-seven percent of all full-time civilian workers are provided paid leave under their employer's short-term disability plan and approximately 50 percent of civilian workers in a union have access to short-term disability benefits," Neely said.

"The typical short-term disability plan provides income replacement (usually between 60 to 70 percent) for 26 weeks," she added.

More information about life insurers' role in paid family and medical leave is available via ACLI.com.