Family and Medical Leave Cost Estimate

Pursuant to a congressional request, GAO provided an estimate of the costs of the Family and Medical Leave Act of 1993, focusing on: (1) eligibility and length of leave allowed; (2) health insurance coverage and employer costs; and (3) the size of the population that would be eligible to take leave under the proposal. GAO noted that: (1) employer costs of continuing health insurance coverage for employees on unpaid family and medical leave would be $674 million annually; (2) an 80 percent increase in estimated employer costs resulted from the increase in employer health insurance costs and the growth in the number of likely beneficiaries; and (3) changes since 1986 in total employment, cost conditions facing employers, and the amount of leave allowed caused the $334 million increase in estimated costs.