Introduction of the Federal Employee Short-Term Disability Insurance Act of 2022

Floor Speech

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Ms. NORTON. Madam Speaker, today, I introduce the Federal Employee Short-Term Disability Insurance Act of 2022, which would help provide financial relief for federal employees who have a short-term injury or disability, become pregnant or develop a pregnancy-related illness. This bill would offer federal employees short-term disability insurance at no cost to the federal government. Employees would be responsible for 100 percent of the premiums and be able to receive disability insurance benefits for up to one year, which would replace a portion of their lost income due to a non-work-related injury or illness or pregnancy. This bill is more important now than ever with the prevalence of so-called ``Long COVID.''

I decided to investigate how we could provide short-term disability insurance for federal employees after learning that many of them already buy short-term disability insurance as individuals in the private market at high individual rates. Although federal employees have good health insurance, federal health benefits do not replace lost income if employees are unable to work. Moreover, while federal employees may have available sick or annual leave days, they may not have enough such days to pay the bills if they have to be out of work for an extended period, such as following surgery. Although there are long-term disability options for federal employees who become permanently disabled, federal employees do not qualify for such benefits until they have worked for the federal government for at least 18 months. My bill does no more than put federal employees in the same position as many of their private-sector counterparts, who often have access to disability insurance through an employer at group rates, an option unavailable to federal employees. This bill would not allow participating insurance companies to exclude persons based on preexisting conditions. Because of the federal government's purchasing power, this bill would provide these benefits at a more competitive rate than is available for employees purchasing as individuals, as many do. Under this bill, the Director of the Office of Personnel Management would contract with private carriers to provide this coverage, essentially providing the equivalent of group coverage available to workers in the private sector.

According to the Social Security Administration, a 20-year-old worker has a one-in-four chance of becoming disabled by retirement age. The majority of disabilities are not caused by major accidents, but by injuries or illnesses, such as back injuries or cancer, according to the Council for Disability Awareness. There is every reason to allow our federal employees to take advantage of the federal government's purchasing power to obtain the most reasonable price if they choose to purchase short-term disability coverage on their own, at no cost to the federal government.

I strongly urge my colleagues to support this bill.

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