Approved Private Plans
Although the Colorado Paid Family and Medical Leave Plan (FAMLI) will be mandatory for all employers with one or more employees working in Colorado, there is an option to meet your FAMLI obligations by using an approved private plan. Employers will need to prove their private plan provides equal or greater benefits and protections than the state-run FAMLI plan by submitting their private plan documents to the FAMLI Division for approval. Read the adopted private plan rules here.
Quick note: Employers planning to offer a private plan (including self-insurance models) are not exempt from paying FAMLI premiums until the FAMLI Division has reviewed and approved the private plan or self-insurance documentation in accordance with the Division’s private plan regulations. All employers must register with the Division and will be required to pay premiums until they receive approval from the Division. Employers will be able to request a refund for premiums paid in 2023, if their private plan has an effective date on or before January 1, 2024, and they submit an application for private plan approval on or before October 31, 2023. Employers using self-insured private plans can apply for approval now by submitting an application in My FAMLI+ Employer.
We are working closely with the Division of Insurance (DOI) to ensure private plan insurance carriers have products available to employers that meet all of the FAMLI requirements. Employers will use My FAMLI+ Employer to submit their private plan application, which will include proof of purchase documentation, after purchasing a plan from an approved carrier. Insurance carriers must file their policies with DOI and get approval from the State before their policies are added to the application system in My FAMLI + Employer. If employers do not see their carrier listed in My FAMLI+ Employer, that means the insurance carrier hasn’t received final approval from the State. The list below identifies which insurance carriers have submitted documentation for paid family and medical leave insurance policies and where they stand in the approval process:
State-Approved Insurance Carriers
*Last Updated 6.1.23*
|Name of Insurance Carrier||Pending Approval
(FAMLI policies offered by these carriers are still being reviewed by the FAMLI Division and Division of Insurance)
(These policies have received approval from the State and are listed in the private plan application of My FAMLI+ Employer.)
|Standard Insurance Company||×|
|ShelterPoint Life Insurance Company||×|
|Life Insurance Company of North America||×|
|Unum Insurance Company||×|
|United of Omaha Life Insurance Company||×|
|The Guardian Life Insurance Company of America||×|
|The Lincoln National Life Insurance Company||×|
|Lincoln Life & Annuity Company of New York||×|
|Reliance Standard Life Insurance Company||×|
|American Fidelity Assurance Company||×|
|Metropolitan Life Insurance Company||×|
|Sun Life Assurance Company of Canada||×|
|Principal Life Insurance Company||×|
|Prudential Insurance Company of America||×|
|Arch Insurance Company||×|
|Hartford Life and Accident Insurance Company||×|
|UnitedHealthcare Insurance Company||×|
|Continental American Insurance Company||×|
Inclusion on this list does NOT act as formal approval for an employer’s use of a private plan to avoid submitting wage data and paying FAMLI premiums. An employer MUST submit a private plan application for a fully approved plan within My FAMLI+ Employer in order to receive formal approval from the FAMLI Division. Please refer to the Private Plan User Guide for step-by-step instructions.
Here’s what you need to know about private plans:
An approved private plan may be in the form of either self-insurance or a policy obtained through an insurance carrier approved by the State. Employers applying for private plan approval will be required to pay a $500 administration fee when they submit their application. After the private plan is approved and starting in the first calendar quarter of 2025, employers with approved private plans will be subject to an annual maintenance fee that will be based on costs specific to each employer’s usage of their private plan from the year prior including costs to audit the plan and administer any appeals related to the plan.
In order to be approved by the Division, a private plan must:
- Offer at least the same number of weeks of benefits.
- Offer at least the same level of wage replacement for each week of benefits.
- Include no additional requirements or conditions.
- Deduct no more than the same amount from employee paychecks as the state plan.
- Cover all employees through the duration of their employment.
- Must provide for the confidentiality of employee information related to FAMLI benefits, and such information must be kept separate from all other employment records.
- Remain compliant with any additional requirements established by the FAMLI Division.
Employers using a self-insured private plan must:
- Apply for private plan approval with the Division in the same way an employer using a private plan obtained through an insurance carrier would.
- Upload your self-insured private plan policy document that indicates how your policy is equal to or greater than the state-run FAMLI plan. The Division will provide the option to download and fill out a self-insured private plan form employers can use to satisfy this requirement in the coming weeks.
- Include in their application a surety bond in an amount equal to one year of total premiums they would owe to the Division along with payroll documentation supporting the surety bond calculation.
- Establish and maintain a separate account: (1) into which all employee contributions are deposited and kept; and (2) from which all benefits must be paid, and from which private plan administrative costs may be paid.
- Maintain surety bond coverage for the duration of its approved self-insured private plan.
After getting approval from the Division to use a private plan, employers must notify their employees of their decision to use a private plan instead of the state plan no later than 30 days before the effective date of the approved plan. This must be a written notice and may be delivered to employees electronically, in person, or via mail. For employees starting work later than the 30 days before the effective date, employers must deliver the written notice immediately upon hire.