The Short-Term Disability Insurance Benefit Protection Clarification Amendment Act of 2026 aims to strengthen protections for individuals receiving short-term disability benefits in relation to the Universal Paid Leave Amendment Act of 2016. The bill prohibits private disability insurance providers from offsetting or reducing short-term disability benefits based on any actual or estimated paid leave benefits that an eligible individual may receive from the District. This prohibition applies regardless of the jurisdiction in which the insurance policy was issued or written.

The bill amends two existing laws: the Universal Paid Leave Amendment Act of 2016 and the Insurance Trade and Economic Development Amendment Act of 2000. Specifically, it clarifies that no insurer may reduce benefits available to an eligible individual under a temporary or short-term disability insurance policy based on benefits received under the Universal Paid Leave Amendment Act. Additionally, it defines terms such as "eligible individual" and "self-insured employer" in accordance with the existing law, ensuring consistency in the application of these provisions.