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Pipestone County hears private-plan option for Minnesota paid family medical leave; MetLife quoted lower rate
Summary
A benefits consultant told the Pipestone County Board that a private-plan option for Minnesota's new paid family and medical leave could save the county about $2,800 a year versus the state plan, but the county must apply to the state and meet carrier requirements by early fall.
Peter Brown, a benefits consultant with Integrity Employee Benefits, told the Pipestone County Board of Commissioners on July 22 that counties may seek private-plan coverage for Minnesota's new paid family and medical leave (PFML) program and that MetLife submitted the lowest competitive bid his firm received.
"Minnesota is gonna become the thirteenth state that's gonna have a paid family medical leave program. And it's the most generous paid family medical leave program that is out there," Brown said. He added that his team ran a request for proposals that drew dozens of carriers and roughly 25,000 employees in pooled groups.
Brown said the state-established premium is 0.88 (per-dollar basis) and that under that rate the county's share would be about $27,000 a year (the combined employer/employee cost was presented as roughly $54,000). He said MetLife quoted 0.79 and that the two-year rate guarantee MetLife offered would reduce the county's cost by about $2,800 a year while producing a similar savings for employees.
Why it matters: County administrators must decide whether to pursue a private plan or accept the state plan. Brown said the county must (1) complete an online application to the state; (2) pay a one-time $500 administrative fee for plan approval; and (3) secure carrier policies that the state approves before January 1, when claims begin.
Board members asked how PFML would interact with existing short-term disability plans and with collective bargaining. Brown said PFML will reduce demand for short-term disability claims and that employers are required by the state law to split the premium 50/50 between employer and employee; "that's what the state law requires," he said. A commissioner raised whether the employee share would become a bargaining point in future contracts; the board discussion noted that bargaining units will likely address that in negotiations.
Brown also reviewed operational differences between the state-run program and private carriers, citing claim-turnaround examples in other states and saying MetLife reported broad experience in PFML administration. He warned that some carriers new to PFML may struggle with systems and staffing, and he urged counties considering a private plan to decide by mid-August, with a hard deadline of Sept. 1 for implementation scheduling.
The board did not take a formal vote on a private-plan decision at the July 22 meeting. Brown and county staff asked commissioners to consider the private-plan option and to let staff know whether the county wants the private-plan application submitted by the September cutoff.
Ending: Brown said federal employees and some independent contractors are exempt under the statute and reiterated that moving to a private plan requires state approval of the carrier policy and a $500 filing fee. County staff said they would report back with comparative rate summaries and follow up with labor negotiators as needed.
