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Bill

S 5318

Prohibits insurers from reducing disability benefits due to the actual or anticipated receipt of social security disability benefits unless certain conditions are met

2025 Regular Session Introduced by Jamaal Bailey and 1 co-sponsor

Prohibits private insurers from reducing disability benefits based on actual or anticipated Social Security Disability benefits, except under defined conditions.

COMMITTED TO RULES
0
WeVote Research Nonpartisan
Bill Summary · S 5318

Summary of S 5318

Overview

S 5318 is a proposed law that would regulate how private insurers handle disability benefits when an insured person is also receiving, or is expected to receive, Social Security Disability benefits. The core aim is to prevent insurers from reducing private disability benefits solely because SSD benefits are being received or anticipated, except under conditions defined in the bill.

  • Status: COMMITTED TO RULES
  • Introduced: February 20, 2025
  • Primary sponsor: Jamaal Bailey
  • Cosponsor: Jeremy Cooney
  • Related bills: S 5242 (prior-session), A 6465 (companion)

What the bill would do (key provisions)

  • Prohibition on reductions: Insurers would be barred from reducing an individual’s disability benefits on the basis of actual or anticipated Social Security Disability benefits.
  • Conditions and exceptions: Any reductions permitted under the bill would only occur if specific conditions defined by the bill are met. The exact criteria are not listed here and would be defined in the bill text.
  • Scope: Applies to disability benefits administered by private insurers (i.e., non-public programs). The law would address how SSDI status interacts with private long-term or disability coverage.

Who is affected

  • Individuals covered by private disability insurance who concurrently receive or expect to receive Social Security Disability benefits.
  • Private insurers that issue disability insurance policies and administer benefits.
  • Potentially employers or sponsors of group disability plans, depending on the plan’s structure and the bill’s final language.

Procedural history and timeline

  • 2025-02-20: Referred to Insurance
  • 2025-03-24: 1st Report CAL.586
  • 2025-03-25: 2nd Report CAL.
  • 2025-03-26: Advanced to Third Reading
  • 2025-06-13: Committed to Rules (noted twice in the record)
  • Current status: Committed to Rules

Additional context

  • The bill has a companion in the Assembly (A 6465) and a related bill from a prior session (S 5242), indicating ongoing interest in limiting offsetting of disability benefits.
  • Details on the exact conditions for permissible reductions are not provided here; the full text would specify under what circumstances, if any, reductions would be allowed.

Why this matters (potential impact)

  • For beneficiaries: Greater protection against reductions in private disability benefits due to SSDI activity, potentially improving financial stability for individuals with long-term disabilities.
  • For insurers: Requires adherence to new rules governing benefit offsets; may limit certain traditional offset practices unless conditions are met.
  • For policymakers: Signals a focus on ensuring coordination between private disability benefits and Social Security disability programs.

Compiled from official sources — confirm details with the bill’s official record.

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