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In Colorado, those applying for short-term disability benefits often discover a significant gap in coverage among the three government-mandated programs.
The first program, Colorado Family and Medical Leave Insurance (FMLI) provides coverage for non-occupational short-term disabilities for twelve to sixteen weeks before abruptly ending.
The second benefit, Social Security, covers non-occupational temporary disabilities that last twelve months or more, per their regulations.
The third program, Worker’s Compensation, provides coverage for temporary disabilities occurring on the job.
Buying a short-term disability policy from a private insurance company can come to the rescue if you act before getting sick, hurt, or pregnant.
In Colorado, employees working in the private industry should consider buying a personal short-term disability policy to supplement the state’s offering. The government-run program has a significant limitation – the benefits end quickly.
A supplemental policy offers financial support to cover the gap between the end of the state program’s benefits and the employee’s return to work.
Table Of ContentsColorado requires state short-term disability through a program with a different name: Paid Family Leave Insurance, which covers the serious health condition of an employee who is unable to work for a brief period.
Apply for Colorado State short-term disability benefits online through MYFMLI+ after January 1, 2024. You may need to complete several documents supporting your claim.
The state short-term disability program in Colorado has two main conditions that you must meet before applying for benefits. Fulfilling both criteria to be eligible for the program is mandatory.
Colorado provides a state short-term disability program that assists individuals based on their wages earned in the past year. These benefits are calculated using a sliding scale.
Use the online disability pay amount calculator to approximate the weekly benefits you may receive under the program. The wages you earned in the past twelve months determine the output.
The estimate may resemble the chart provided below.
| Weekly Wage | Weekly Benefit | Annual Maximum | Percentage of Wage |
|---|---|---|---|
| $500 | $450 | $5,400 | 90% |
| $1,000 | $784 | $9,408 | 78% |
| $1,500 | $1,034 | $12,408 | 69% |
| $2,000 | $1,100 | $13,200 | 55% |
| $3,000 | $1,100 | $13,200 | 37% |
The state short-term disability program in Colorado has a drawback in its benefit duration. The program only provides claims payments for a limited time, which can be a challenge for many workers who cannot return to work once the payments stop.
Income opportunities while waiting for Social Security disability are limited. Additionally, you will only qualify if your medical condition lasts for at least twelve months or longer.
Employees of the Colorado State government enjoy short-term disability benefits funded by taxpayers without the coverage. These public employees receive coverage automatically, the first day of the month following their hire date.
Apply for short-term disability benefits through the issuing organization if you are a qualifying state government employee and sustained an off-the-job accident or illness.
State government employees do not automatically participate in the FMLI program unless their agency or department volunteers.
Colorado Medicaid recipients may qualify for the state-sponsored short-term disability program (FMLI), provided they work and contribute premiums through payroll deduction with their employer.
Health First, Colorado’s Medicaid offering provides benefits for medical care, dental services, emergency services, behavioral health, physical therapy, and more but does not replace lost income when you cannot work.
Purchasing private short-term disability insurance is a great way to enhance the Colorado state-mandated program for people working in the private industry. Select a three-month elimination period to keep the premiums affordable, bridging the nine-month gap before Social Security benefits become available.
If your employer does not offer short-term disability insurance, consider buying it from an external source. With the state-mandated program in place, fewer companies may offer voluntary options.
It is best to purchase the insurance before you become sick, injured, or pregnant to avoid the nine-month gap in coverage. This move will give you peace of mind, knowing you are covered.
In Colorado, workers have a more straightforward process to apply for temporary disability benefits. Because the state mandates comprehensive coverage, individuals do not need to purchase supplemental insurance beforehand for two specific types of losses.
Social Security provides coverage for temporary disabilities unrelated to work and lasts for 12 months or more. In Colorado, the government requires most employees to contribute to the Social Security system through FICA payroll taxes.
To apply for temporary disability benefits through Social Security, you can do it online. It’s important to note that your medical condition does not have to be permanent or last until you reach the age of 65. You can trust the definition provided by the federal government.
“To meet our definition of disability, you must not be able to engage in any substantial gainful activity (SGA) because of a medically determinable physical or mental impairment(s) that is either:
Workers’ compensation provides coverage for employees who experience temporary disabilities while on the job. In Colorado, most employers must purchase this insurance policy for their employees, so most employees should be automatically covered.
Apply for Worker’s Compensation benefits if you experience a temporary disability while on the job. These resources can help you financially when you cannot work due to injury or illness.
Report any work-related injuries or illnesses to your employer in writing immediately. Your Human Resources person can help you file a claim. You have up to two years to submit form W15 to the state through the uninsured employer fund.
