Legislative activity dropped during the final quarter of 2022, but regulators remained busy, particularly implementing paid leave laws. In Colorado and Oregon, contributions to paid family and medical leave (PFML) programs started on Jan. 1, 2023. Other states announced their 2023 PFML rates, and new leave-related laws passed in Michigan, New York and Washington, DC. Vermont announced a voluntary PFML program, due to take effect this year. COVID-19 leave mandates continued to wind down. A few states — including California, Delaware and Pennsylvania — enacted new health insurance mandates. Philadelphia now requires some employers to provide commuter benefits, while Massachusetts changed its monthly limits on commuter benefits to match federal limits.
 

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Leave laws

Colorado and Oregon finalized rules for PFML programs starting this year, while several other states simply updated their rates for 2023. Michigan enacted a tax incentive for employers to offer paid adoption leave. New York passed a leave anti-discrimination measure. Vermont initiated a voluntary PFML program, similar to one in New Hampshire. For more details on the New Hampshire program, see Roundup of selected state health developments, third-quarter 2022 (Nov. 4, 2022)
 

COVID-19 issues

California’s nonemergency COVID-19 prevention regulations for workplaces — discussed further below — replace emergency regulations and remove the requirement to continue pay for excluded workers. In December 2022, the Los Angeles city council voted to end the local state of emergency on Feb. 1, 2023, which means the COVID-19 supplemental paid sick leave requirement ended on Feb. 15. COVID-related supplemental paid leave requirements under California state law and in New York City expired at the end of 2022. Similar requirements expired in the fourth quarter of 2022 in Washington state (Oct. 31) and Washington, DC (Oct. 1). On Feb. 14, 2023, the Long Beach, CA city council approved a resolution that ends the city’s supplemental sick leave requirement, effective Feb. 21.
 

Insurance

State legislatures and agencies wrapped up the year with several insurance laws affecting group health plans, particularly in New York. In addition, a Massachusetts ballot initiative created a medical loss ratio (MLR) program for dental insurance.
 

Commuter benefits

Massachusetts changed its limits on commuter benefits, retroactive to Jan. 1, 2022. A Philadelphia ordinance now requires covered employers to offer commuter benefits. For more details on federal, state and local commuter benefit laws, see Transportation plans offer valued benefits but pose compliance issues (Jan. 25, 2023).
 

Other benefit-related issues

Arizona, Oregon and South Dakota passed ballot initiatives in November related to medical debt, affordable health coverage and Medicaid expansion, respectively. California reported on prescription drug cost transparency. Delaware and Michigan passed telehealth laws. A Washington report estimated its long-term services and supports (LTSS) program, which will start this July, should remain solvent almost until the end of the 21st century. Washington also issued a report on the viability of a universal healthcare program.
 

Related resources

Mercer Law & Policy resources

• States, cities tackle COVID-19 paid leave (Feb. 7, 2023)
• 2023 state paid family and medical leave contributions and benefits (Feb. 1, 2023)
• Transportation plans offer valued benefits but pose compliance issues (Jan. 25, 2023)
• Roundup of selected state health developments, third-quarter 2022 (Nov. 4, 2022)
• Roundup: State accrued paid leave mandates (April 29, 2022)
• Washington changes long-term care law (April 13, 2022)