Maryland short-term disability insurance is an important benefit for growing families in the Old Line State. Don’t assume the state offers a program.
Expenses often pile up very quickly when children enter the picture, and a loss of income comes at the most inconvenient time.
Lost income caused by a medical event can put a big dent in any family’s finances. Learn how short-term disability insurance works in Maryland.
- Benefit totals and application forms
- Qualifying Conditions
- Maternity leave
MD Disability Application Forms
There are three important short-term disability application forms: claims forms, account forms, and policy application forms. The state does not have a program. You must purchase a policy in advance of your need.
Applying for Benefits
Applying for short-term disability benefits requires that a claims form be completed. A Signature is needed from a doctor certifying the medical reason for the disability. Employer signatures verify that the employee is not working or earning an income.
Applying for a Policy
Account forms are often needed for women seeking to purchase policies covering normal childbirth. These policies are only available as an employee benefit program. An employer must make at least an employee paid option available to all employees. The account application form is needed to establish a business relationship between the employer and the issuing company.
Policy application forms must be completed in order to purchase a policy. An agent will record answers to income and medical questions, and submit the signed application form to the issuing company for approval.
MD Short Term Disability Benefits
MD does not offer state temporary benefits. Personal short-term disability policies in Maryland provide income replacement in the event of a covered accident or illness. Break that statement down into parts for a clearer explanation of how the policies work: income replacement benefits, and covered medical conditions.
Income Replacement Totals
The income replacement totals for short-term disability in MD are calculated by three factors: monthly amount, elimination period, and payment duration. Each of these policy features are determined when the policy is first purchased.
The monthly income replacement amount is expressed in two ways: a percentage of income, and a hard dollar cap. The percent of gross income replacement can reach as high as 70% for some policies. The hard cap never exceeds $6,500 per month. The smaller of the two amounts is used.
The elimination period describes how quickly income replacement payments begin after the initial period of disability. Elimination periods begin at zero days for accidents, and can be as long as 90 days.
The payment duration is defined as the length of time income replacement payments are made when continuously disabled. Payment durations can last as long as 24 months.
Get a short-term disability quote to see what the monthly premium might be under the three options: monthly amount, elimination period, and payment duration. Compare the monthly premium costs to projected benefit totals.
Maryland short-term disability insurance qualifying conditions include accidents and illnesses.
Accidental injuries that occur after the policy effective date are covered. Accidents that are intentional, incurred while committing a crime or while intoxicated are not covered. Biologic illnesses that are not considered preexisting conditions are qualifying medical conditions. Find more below on mental disorders and preexisting conditions.
Pregnancy Bed Rest
Pregnancy bed rest is a common claims reason for short-term disability. Twenty five percent of pregnancies experience medical complications, or are considered high-risk. Complications of pregnancy that are medically based are covered illnesses.
Short-term disability for pregnancy is a great way to get the rest needed to protect the health of mom and her baby without the financial worry.
The number one reason why people are denied claims is waiting until after conception to purchase a policy. You must purchase your policy prior to conception to qualify for bed rest benefits. Pregnancy is considered a preexisting condition.
Short-term disability covers maternity leave in Maryland. Policies that cover mom’s recovery from normal childbirth help create maternity leave income. This is a great opportunity to buy a policy that supports income when things go according to plan. Your maternity leave benefit may be much larger than what you pay in premium prior to giving birth.
Postpartum disorders may delay mom’s return to work. Medically based postpartum problems such as hemorrhaging, or infections are often qualifying conditions. Postpartum depression is often not covered as it is considered a mental illness.
Maryland Short Term Disability Laws
There is no law mandating Maryland state short-term disability insurance. Employers are not required to offer the program to employees. Everything is voluntary. Employers choose whether to offer an option, and employees choose whether to purchase a policy.
Group Disability Law
Maryland insurance laws mandate that any group disability plan that covers temporary disability must offer the option to cover any work disruptions brought on by pregnancy and/or recovery from childbirth. Most policies do this anyway in other states, but having the law on the books ensures that all plans provide this critically important feature.
Disability Leave Laws
Any employer that provides paid leave for the birth of a child, then it must provide the same benefit for the adoption of a child. This of course assumes that employers provide paid leave, which many do not.
The Maryland Flexible Leave Act requires that employers, who provide sick leave pay under a collective bargaining agreement, must allow the sick time to be used to care for a family member with a medical condition. The stipulation applies to employers with fifteen or more employees.
The Maryland Temporary Cash Assistance program provides cash resources to needy families with dependent children.
The Maryland IVF mandate provides couples with needed assistance, but also a wakeup call. Short-term disability must be purchased prior to conception. Couples undergoing assisted reproductive therapies should act accordingly.
The MD Division of Rehabilitation Services helps people with disabilities to go to work and stay independent. Maryland’s Disability Determination staff determines the eligibility of MD applicants for Social Security Benefits. The office contact information is:
PO Box 6338
Timonium, MD 21094-6338