Maryland’s Paid Family and Medical Leave Insurance (FAMLI) program—created under the Time to Care Act—will soon provide workers with paid, job-protected leave for major life events. With payroll contributions starting January 1, 2027, and benefits expected to begin in 2028, employers now face an important decision:
- Stick with the State Plan—or apply for a Private Plan? Declaration of Intent due by November 15, 2026, if avoiding early state contributions
What Is Maryland FAMLI? FAMLI is a statewide insurance program covering nearly all Maryland employers and employees.
Questions? contact https://www.insurance-financial.net/health-insurance/
Key features:
- Up to 12 weeks of paid leave per year (up to 24 weeks in certain cases)
- Up to $1,000/week in benefits
- Covers:
- Bonding with a new child
- Serious personal health conditions
- Caring for family members
- Military-related needs
- Funded through payroll contributions shared by employers and employees
All employers with at least one Maryland employee must participate—either through the State Plan or an approved Private Plan.
Questions? contact https://www.insurance-financial.net/health-insurance/
Timeline Employers Should Know
Fall 2026 – Employer registration opens
Sept 1–Nov 15, 2026 – Private plan Declaration of Intent window- DEADLINE 11-15-26
Jan 1, 2027 – Payroll contributions begin
2027 – Private plan applications submitted
Jan 2028 – Benefits become available
Option 1: The State Plan
The State Plan is administered by the Maryland Department of Labor and is the default option.
How it works:
- Employers automatically enroll when registering with the state https://paidleave.maryland.gov/register/
- Employers send payroll contributions to the state fund
- The state processes claims and pays benefits
Option 2: Private Plans
Employers can opt out of the State Plan by offering an approved private plan (sometimes called an “Equivalent Plan” or EPIP).
- Commercial (Insured) Plan
- Purchased through an insurance carrier
- Carrier handles:
- Claims processing
- Benefit payments
- Easier to administer than self-insured
- Predictable costs
- Self-Insured Plan
- Employer funds and manages the program directly
- Employer (or third-party administrator) handles claims
- Maximum flexibility
- Potential cost savings over time
- Self-Insured Plan REQUIRES:
- Financial stability proof
- Administrative infrastructure
- At least 50 employees (with limited exceptions)
- Self-Insured Plan REQUIRES:
Key Private Plan Rules
- Private plans must provide benefits and protections that are equal to or better than the State Plan.
- Must be approved by Maryland’s FAMLI Division
- Must match or exceed state benefits
- Employers must apply (starting in 2027)
- Declaration of Intent due by November 15, 2026, if avoiding early state contributions
State Plan vs. Private Plan: Side-by-Side
| Feature | State Plan | Private Plan |
| Administration | State-run | Employer or insurer |
| Claims handling | State | Carrier or employer |
| Flexibility | Low | High |
| Compliance risk | Low | Moderate |
| Cost control | Limited | Potentially better |
| Integration with existing benefits | Limited | Strong |
| Setup complexity | Minimal | High |
Action Steps for Employers
To prepare for FAMLI:
- Assess your current benefits
- Review parental leave, STD, PTO, and leave policies
- Evaluate plan options
- Compare State Plan vs. Private Plan costs and administration
- Plan for contributions
- Prepare payroll systems for 2027 deductions
- Watch key deadlines
- Consider submitting a Declaration of Intent in 2026 if pursuing a private plan
- Communicate early
- Begin educating employees about upcoming benefits
Final Thoughts
Maryland FAMLI introduces a major new benefit—and a strategic decision for employers.
- The State Plan offers simplicity and ease
- A Private Plan offers flexibility, integration, and potential cost advantages
The right choice depends on your organization’s size, resources, and long-term benefits strategy. Contact Connie Phillips Insurance today to discuss the best option for you.