Massachusetts’ Paid Family Leave and Health Continuation Rights

Massachusetts’ Paid Family Leave and Health Continuation Rights

On January 6, 2023, the Massachusetts Department of Family and Medical Leave (DFML) issued regulations addressing how an employer can maintain a covered individual’s health insurance during a period of paid leave. As background, the Massachusetts’ Paid Family and Medical Leave law provides paid leave benefits to covered individuals for certain qualifying events. See prior Benefit Beat articles here and here.

The regulations provide that an employer shall continue to provide for, contribute to, or otherwise maintain the employee's employment-related health insurance benefits, if any, at the level and under the conditions that coverage would have been provided if the employee had continued working continuously for the duration of such leave.

The provision “otherwise maintain” shall be interpreted broadly to encompass any method of benefit maintenance or approximation of benefits, including the employee’s costs for such coverage, such as premium contributions, co-pays, and deductibles.

The regulations provide examples of how an employer can otherwise maintain health coverage:

  • The employer continues to pay its portion of the health insurance premium for the employee and the employee remits his/her portion of the health insurance premium in accordance with the employer's policies or practices for the duration of leave.
  • The employer could subsidize COBRA or state continuation as applicable.
  • An employer participates in a multi-employer plan that contains a provision for maintaining coverage such as through pooled contributions by all employers’ party to the plan

An employer is not required to provide for, contribute to, or otherwise maintain employment-related health insurance benefits for a covered individual who is not eligible to receive such benefits or for a covered individual who resigns during leave.


The information contained in this Benefit Beat is not intended to be legal, accounting, or other professional advice, nor are these comments directed to specific situations. This information is provided as general guidance and may be affected by changes in law or regulation. This information is not intended to replace or substitute for accounting or other professional advice. You must consult your own attorney or tax advisor for assistance in specific situations. This information is provided as-is, with no warranties of any kind. CBIZ shall not be liable for any damages whatsoever in connection with its use and assumes no obligation to inform the reader of any changes in laws or other factors that could affect the information contained herein.

Massachusetts’ Paid Family Leave and Health Continuation Rightshttps://www.cbiz.com/Portals/0/Images/Massachusetts Paid Family Leave.jpg?ver=KM4Z0sQN7y3pRTAb6eFjrw%3d%3dOn January 6, 2023, the Massachusetts Department of Family and Medical Leave (DFML) issued regulations addressing how an employer can maintain a covered individual’s health insurance during a period of paid leave. 2023-02-07T20:00:00-05:00On January 6, 2023, the Massachusetts Department of Familyand Medical Leave (DFML) issued regulations addressing how an employer canmaintain a covered individual’s health insurance during a period of paid leave. Regulatory, Compliance, & LegislativeEmployee Benefits ComplianceNo