Virginia Insured Disability Following Childbirth: Senate Bill 567

Virginia Insured Disability Following Childbirth: Senate Bill 567

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On April 9th, Governor Ralph Norman signed Senate bill 567 (VA Code § 38.2-3407.11:4), which amends the Code of Virginia that relates to disability insurance and disability arising out of pregnancy or childbirth.

The bill requires that insured individual or group short term disability policies that cover disability arising out of childbirth must provide a payable benefit for at least 12 weeks immediately following childbirth.

The provision of this new section applies to any policy delivered or issued (i.e., sitused) in Virginia on or after July 1, 2021.

Employer next steps:

  • Employers who have insured short-term disability plans written in the state of Virginia should contact the insurer to ensure plan and policy documents are up to date.
  • In addition, employers should review any company leave plans that coordinate with the affected insured STD policy and assess impacts to paid benefits, leave policies and processes, and any financial implications.
    • Considerations include:
      • Extending the duration of company leave plans
      • Financial impact as a result of the extended duration, e.g., if current company policies supplement STD
      • Extending job protection: it is not common for insured STD policies to provide job-protection, but FMLA and other company leave plans may provide job protection
      • Impact to plan experience (loss ratio and future renewal rate impacts) given the extended duration of payable benefits

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