Want to switch your business from a private plan to the FAMLI plan? Here’s what you need to know


Submitted by [user:field_first_name]
Hide Featured Image
true

If you’re an employer currently using an approved private plan to fulfill your FAMLI obligations and are interested in switching to Colorado’s state-run FAMLI coverage, our doors are open, and it’s easy to make the change. 

Colorado employers have a choice when meeting their obligations to offer paid family and medical leave to their employees. They may use the FAMLI Division to file quarterly wage reports and premiums, or they may get the Division’s approval to use a private insurance plan that meets or exceeds the law’s requirements.

Now some Colorado employers are telling us that the State’s FAMLI plan may be more convenient for them, and they want to know how to unwind their private coverage and participate in the FAMLI plan instead. We’ve worked hard to build an insurance program that works for employers of all sizes, and we’re thrilled to hear that the word is getting out.

Here are a few things employers need to know about terminating a private plan and switching to FAMLI coverage instead:

  • Employers ending a private plan must notify the Division at least 30 days prior to the proposed termination date by emailing CDLE_FAMLI_PrivatePlans@state.co.us.
  • An employer that elects to return to the FAMLI plan must remain on the state plan for at least three years. If an employer decides to leave the FAMLI plan before that three years is up, they must pay the amount that would have been remitted to the FAMLI Division during that three-year period.
  • When a self-insured private plan is terminated, the rules are a bit different. Check out the “Private Plans in Depth” section of our website for more details on terminating a self-insured plan. 
  • Employers must also notify their employees of the termination at least 30 days prior to the proposed termination date. The Division will ask for proof of that notification. 
  • Employees who are in the middle of a paid family or medical leave claim during the transition will finish their leave using the employer’s private plan.

Remember that employers must retain their private plan coverage through the termination date and prior to the effective date of the state’s FAMLI plan. If they do not, they will be assessed a fine per employee, per each day the employee was not covered. 

Want personalized help with unwinding a private plan? Our FAMLI business experts are standing by to help. Email us at CDLE_FAMLI_info@state.co.us or call us at 1-866-CO-FAMLI any weekday between 7 a.m. and 6 p.m. MT.