With counties now deciding whether to participate in Maryland’s FAMLI State Plan or pursue an Equivalent Private Insurance Plan (EPIP), the next question is: what happens next?
Employers choosing the State Plan should prepare for payroll contributions beginning in January of 2027. Employers collecting employee contributions must provide notice to employees one pay period before deductions begin.
Counties, as public employers, should also ensure they are registered with FAMLI and have identified staff responsible for managing the program.
For counties pursuing an private plan and seeking to avoid State Plan contributions during the 2027 seeding period must submit a Declaration of Intent (DOI) by November 15 through the Maryland FAMLI website.
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.
As previously covered by MACo, employers pursuing an Equivalent Private Insurance Plan (EPIP) can choose either a self-funded plan or an insured plan. 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 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.
Before submitting the DOI, employers must complete the required private-plan consultation and obtain a signed Proof of Private Plan Consultation form from a licensed insurance agent or other insurance representative. Many counties met this requirement if they attended the recent collaborative webinar on August 28. Bolton provided the consultation form to Collaborative members who joined the webinar and worked separately with any county who was unable to attend.
Once registered with FAMLI, the county’s designated authorized officer can upload the completed form, attest to the county’s obligations, and submit the DOI electronically. FAMLI will notify employers of the outcome within 15 business days.
Counties pursuing an private plan will need to continue working toward a formal private-plan application, which is due October 1, 2027.
With the November 15 deadline approaching, counties pursuing a private plan should make sure they have completed their consultation, registered with FAMLI, identified an Authorized Officer, and are preparing to submit their DOI.
Helpful links:
MD Department of Labor: Understand your plan.
Stay tuned to Conduit Street for more information.
