Requires that any private short-term disability insurance (STDI) carrier that bids to provide coverage to Rhode Island state employees must cover all eligible employees, regardless of age.

Plain-English Summary

This bill would set a new rule for insurance companies that want to offer short-term disability insurance (STDI) to Rhode Island state employees. Short-term disability insurance provides temporary income replacement to workers who cannot work due to illness, injury, or other qualifying medical conditions. Under this bill, any insurance company that submits a bid to provide this coverage to state employees would be required to cover all eligible employees, no matter how old they are.

Currently, some insurance carriers may exclude older workers or place age-based restrictions on who qualifies for short-term disability coverage. This bill would make age restrictions off-limits as a condition of doing business with the state. In practical terms, this means that if an insurance company wants a contract to cover Rhode Island state workers, it must agree to extend the same short-term disability coverage to all eligible employees — a younger worker and an older worker near retirement would have equal access to benefits.

This bill directly affects Rhode Island state employees — particularly older workers who might otherwise be denied or excluded from short-term disability coverage — as well as insurance companies competing for state contracts. Insurance carriers that rely on age-based criteria to limit their risk would need to adjust their offerings if they want to participate in the state employee benefits market.

As of now, the bill has been introduced in the House and referred to the House Corporations Committee, which has recommended holding it for further study. This means it has not yet advanced toward becoming law.