On July 25, 2024, Mayor Muriel Bowser signed the Short-Term Disability Insurance Benefit Protection Clarification Temporary Amendment Act of 2024 (Temporary Amendment Act) (DC Act 25-536) into law.
The Temporary Amendment Act extends the prohibition of short-term disability policies reducing benefits (also known as offsetting benefits) based on an insured’s receipt of DC Paid Family and Medical Leave benefits. The prohibition applies to fully insured policies regardless of where the policy is issued but does not apply to self-insured plans.
As previously reported, this prohibition was initially effective in May 2021 on a temporary basis and has been extended multiple times since. Under the new Temporary Amendment Act, the prohibition will remain in place for at least 225 more days until March 7, 2025.