American Council of Life Insurers Statement on Paid Family and Medical Leave

WASHINGTON, Oct. 23 (TNSOps) -- The American Council of Life Insurers issued the following statement on Oct. 22, 2021:

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American Council of Life Insurers President & CEO Susan Neely issued the following statement today on paid family and medical leave:

"Establishing paid leave for all is a shared public policy priority, and the heart of the matter is how to achieve a benefit that is delivered consistently with ease for workers.

"The best way to get there is to dramatically expand what 62 million Americans now have, and don't want to lose. 92 percent of workers who have employer-based paid leave today say they are very satisfied./*

"Under the employer-based system today:/**

* Insurers pay out more than $11.3 billion annually in disability claims for workers who need time away from work to welcome a child or recover from illness or injury.

* Typical benefits include 22-26 weeks of paid leave, with 60-70% of wages replaced.

* Insurers review more than 2.5 million short-term disability (medical leave) claims annually, with 78% of claims approved on first review.

- The most common reasons for claims denials were "claim set up in error" - the claimant is not covered on the policy; "requested information not received," "claimant withdrew claim," "claimant returned to work," and "claimant not unable to work."

* Insurers reviewed nearly 241,000 family leave claims in 2020, with 81% approved during the initial review.

* Employer-based paid leave benefit systems are fast, with most claims paid in about 13 days on average.

"Americans across the political spectrum support a partnership between the government and private plans that provides paid leave for employees of small businesses and self-employed workers.

"A public-private partnership that secures this marketplace strength with new federal standards for coverage is the most effective way to achieve paid leave for all. It really does take all of us."

Footnotes:

*/Global Strategy Group (GSG) online survey of DI insurance claimants who received income payments within the last 10 years. May, 2021

**/Data compiled from ACLI Research and the Society of Human Resources Managers.