As Maryland moves toward implementation of the Family and Medical Leave Insurance (FAMLI) program, counties considering participation in a private plan through the MACo, MABE, MML Time to Care Act (TCA) Collaborative should be aware of several important updates to the private-plan process and upcoming deadlines.

As previously covered by MACo, in 2023, MACo joined with the Maryland Association of Boards of Education (MABE) and the Maryland Municipal League (MML) to develop a collaborative joint venture to streamline the offering of qualified family leave benefits on behalf of interested member jurisdictions. Bolton is the collaborative’s program administrator.

TCA Collaborative Updates:

The TCA Collaborative, working with Bolton, recently completed the first stage of its private-plan request for proposals (RFP) process. While carriers are interested in providing coverage, the current insurance market is not supporting a single, uniform premium rate across all Collaborative members. Instead, carriers are expected to evaluate and price each participating employer individually. The Collaborative will continue working with carriers to obtain illustrative pricing for individual employers and ultimately secure firm proposals as carriers receive approval from the Maryland Insurance Administration.

This approach reflects broader changes in the private paid-leave insurance market. Bolton reports that carriers offering insured paid family and medical leave coverage in other states have experienced challenges, including following Minnesota’s January 2026 program launch. As a result, carriers are reassessing pricing. Many carriers are also expected to require employers to maintain certain underlying coverage.

Although individual employers may receive different premium rates based on their own characteristics and underwriting, Bolton has negotiated discounted pricing with certain vendors specifically for Collaborative members. The Collaborative also continues to provide a shared procurement process, administrative support, vendor management, compliance assistance, and employee communications.

In addition, the Collaborative’s procurement process does not necessarily mean all members must select the same carrier. The current process allows for the possibility that more than one carrier could ultimately be selected, giving participating employers flexibility as they evaluate their options.

Paid Leave Implementation in Other States:

According to the National Conference of State Legislatures (NCSL), 13 states and DC have passed a mandated paid family and medical leave program. Each state and program has some variation in how they are funded and whether or not they have been fully implemented or are in the process of implementation.

Minnesota

Minnesota’s recent experience with its own new Paid Leave program is providing insurers with an early look at how paid family and medical leave programs perform once they move from actuarial projections to actual claims. Minnesota launched its statewide Paid Leave program benefits on January 1, 2026, making it one of the newest states to operate a comprehensive paid leave program. The program is funded through a 0.88% payroll premium in 2026, split between employers and employees, and allows employers to pursue approved private equivalent plans instead of participating in the state program (a very similar structure to what Maryland has framed for its employers).

The program has seen significant use during its first six months. According to the Minnesota Department of Employment and Economic Development (DEED), as of July 2026, more than 75,000 Minnesotans used Paid Leave, with more than $600 million in benefits paid:

The first six months of Paid Leave show Minnesotans are excited about the program and will continue using and depending on it to support themselves and their families. We remain proud of the positive impact it’s had so far for Minnesota workers and their families. We’re keeping the premium rate at 0.88% for 2027 and we look forward to ensuring Paid Leave’s long-term success as data from the first year continues to come in, said DEED Commissioner Matt Varilek.

According to Bolton, Minnesota’s paid leave program, which has been live for about nine months, has resulted in significant losses for carriers offering insured paid family and medical leave coverage. As carriers assess this experience alongside experiences in other states, underwriting requirements are tightening and pricing is being reevaluated. This has made carriers more cautious about taking on broad paid family and medical leave insurance exposure and, in some cases, more interested in offsetting potential losses through other underlying coverages when evaluating a broader book of business.

Washington

In the state of Washington, its paid leave program is facing growing financial pressures that could have implications for other states developing similar programs. The program is projected to face a deficit of more than $350 million by 2029 as claims and benefit costs continue to grow, while state law caps the premium rate at 1.2%, potentially leaving the program unable to keep pace with future costs.

A state actuarial report found the program could face nearly a $1 billion deficit by 2030 under the current tax rate limits.

From Washington’s state actuarial report:

Projected account balance

• Account balance after premium collection for rate year:
  • -$78 mil by 2027 Q1
  • -$346 mil by 2029 Q1
  • -$992 mil by 2030 Q1

According to an article from the Washington State Standard, lawmakers have considered several options to address the projected shortfall, including changing how premiums are calculated, increasing the taxable wage base, raising the premium cap, or reducing the program’s eligibility or benefits.

From the Washington State Standard:

The program has been steadily growing since its launch in 2020. From July 1, 2024, to June 30, over 320,000 applications were submitted for paid leave, up 15% from the previous year, according to a report this month. Over 240,000 Washingtonians received more than $2 billion in total benefits, a year-over-year increase of about $300 million.

Maryland Decision Ahead — State Plan vs. Private Plan:

For Maryland counties weighing their options, employers participating in the State Plan will begin contributions on January 1, 2027. The 2027 contribution rate is 0.9%, with employees permitted to pay up to 50% of the rate. FAMLI benefits are scheduled to become available in January 2028.

Employers pursuing an Equivalent Private Insurance Plan (EPIP) can choose either a self-funded plan or an insured plan. The TCA Collaborative is focused on helping members evaluate and pursue the insured private-plan option. Private-plan premiums would begin in January 2028.

For local government employers with an approved Declaration of Intent (DOI), there is also an important distinction that MACo and the Collaborative advocated for in the 2025 session, which is to exclude local government employers (pursuing a private plan) from having to deduct and hold money in escrow for employer and employee contributions to cover the cost of the State plan.

Key Deadlines for Counties:

The immediate deadline applies to counties that want to preserve the option of pursuing a private plan.

• September 1, 2026: DOI submission window opens.
• November 15, 2026: Deadline for employers pursuing a private plan to submit a DOI.
• January 1, 2027: State Plan payroll withholding and contribution period begins.
• October 1, 2027: Private-plan application deadline for employers that submitted a DOI.
• January 2028: FAMLI benefits become available to eligible employees.

Each county interested in pursuing a private plan must submit its own DOI, even if it is participating in the TCA Collaborative. The DOI is not binding; an employer can ultimately choose to join the State Plan, although State Plan contributions would then be owed retroactively, plus interest and penalties.

To complete the DOI process, counties must register in the FAMLI system, complete and upload the Proof of Private Plan Consultation form, and submit the required attestation. Bolton will provide the consultation form to Collaborative members who joined the recent webinar on August 28. If a county was unable to attend, Bolton will work with that county separately to satisfy the consultation requirement.

What Counties Should Do Now:

For counties interested in maintaining the private-plan option, the immediate priorities are:

1. Register as an employer in the FAMLI system and identify an Authorized Officer.
2. Complete the private-plan consultation requirement with Bolton.
3. Submit a DOI between September 1 and November 15, 2026, if pursuing the private-plan option.
4. Continue evaluating private-plan pricing as Bolton works with carriers on employer-specific quotes and prepares for the formal 2027 process.

The Collaborative’s work is continuing into the next phase. Bolton will continue seeking illustrative employer-specific quotes and expects those to be available to collaborative members by the end of September 2026, compare those options with the State Plan, and obtain firm carrier proposals in 2027 as carriers receive approval to release them. Members will then be able to select their coverage and submit the private-plan application to the Maryland Department of Labor.

Stay tuned to Conduit Street for more information.

This article is part of MACo’s Policy Deep Dive series, where expert policy analysts explore and explain the top county policy issues of the day. A new article is added each week – read all of MACo’s Policy Deep Dives.