Researchers urge policymakers to compare worker benefits in optional, market-based programs to those in universal, comprehensive programs

WASHINGTON, D.C. – December 17, 2025 – As states prepare for the 2026 legislative sessions, the National Partnership for Women & Families and New America’s Better Life Lab released new research today, evaluating private insurance–based paid family and medical leave laws. In states where these approaches are used, private companies sell paid leave insurance and employers, as well as employees, can choose to opt-in. This is in contrast to the 13 states and the District of Columbia that have passed laws guaranteeing virtually all workers and businesses in the jurisdiction access to paid family and medical leave by the creation of public funds or employer requirements.

The report provides state leaders with a clear assessment of two market-based models that have increasingly been adopted in states: public-private partnership programs and voluntary insurance sale models.

• Public-private partnership model: A state contracts with a private insurer to offer a standardized, opt-in paid leave product to employers and potentially individuals – an approach used in New Hampshire and Vermont.
• Voluntary insurance sale model: Private insurers sell paid leave products to an employer, with limited state regulation and no standardized pricing or coverage. Eight states – Alabama, Arkansas, Florida, Kentucky, South Carolina, Tennessee, Texas, and Virginia – have passed laws authorizing the insurance commission to approve these sales.

Researchers analyzed each model and considered the impact on workers and employers, reviewing program design, flexibility and participation by insurers, employers and workers. They found that public-private partnership models cover a small share of the workforce that may stall or decrease over time. States that have authorized voluntary insurance sales lack transparency, and the research found little evidence of many insurers selling or employers using this model.

Currently, tens of millions of workers – particularly low-wage workers, women and workers of color – have no access to paid parental, family caregiving or personal medical leave on the job. Several states offer comprehensive paid family and medical leave through programs that apply to nearly all private-sector workers by collecting small pooled contributions from employers, employees or both. Recently, some states have pursued these market-based models. These models make paid leave optional and rely on individual employers – or even individual workers – to voluntarily purchase coverage.

“With 14 states including D.C. having already passed comprehensive paid leave laws, advocates are hopeful that additional states will soon follow, but, unlike voluntary programs that available evidence indicates have not meaningfully expanded access to paid leave for workers, these laws must be good for everyone – workers, families and businesses,” said Jocelyn Frye, president of the National Partnership for Women & Families. “While it’s understandable that states don’t want to sit around and wait for Congress to respond to the will of the vast majority of voters and pass a comprehensive, national program, it’s essential that state policymakers advance paid family and medical leave programs that will deliver real benefits to families, the workforce and the economy.”

“Over the last several years, lawmakers of all parties have become increasingly interested in expanding workers’ access to paid family and medical leave. This report is the first of its kind to examine the impact of newer, voluntary, market-based approaches to paid leave, which some states have developed as an alternative to comprehensive, universal policies that states have passed and improved upon for more for more than 20 years,” said Vicki Shabo, senior fellow at New America’s Better Life Lab, and one of the report’s authors. “Our investigation confirms that not all paid leave policies generate benefits for workers, families or employers. States interested in ensuring workers’ access to paid leave at a low-cost with proven value will do better by adopting a tested approach than by incentivizing or authorizing private sales.”

Despite overwhelming public support for paid leave, the U.S. remains one of the only wealthy nations without a national paid family and medical leave program. In the absence of federal action, access to paid leave depends almost entirely on what state someone lives in or what their employers choose to offer.

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The National Partnership for Women & Families is a nonprofit, nonpartisan advocacy group dedicated to promoting fairness in the workplace, reproductive health and rights, access to quality, affordable health care, and policies that help all people meet the dual demands of work and family.

New America is a think-and-action tank dedicated to renewing the promise of America in an age of rapid technological and social change. Our work prioritizes care and family wellbeing, advances technology in the public interest, reimagines global cooperation, builds effective democracy, and ensures affordable and accessible education for all. Learn more at newamerica.org.

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