The Short-Term Disability Insurance Benefit Protection Clarification Amendment Act of 2025 aims to amend the Universal Paid Leave Amendment Act of 2016 and the Insurance Trade and Economic Development Amendment Act of 2000. 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 applies regardless of the jurisdiction in which the insurance policy was issued or written.

Specifically, the bill amends Section 107(j)(1) of the Universal Paid Leave Amendment Act to clarify that no insurer may reduce benefits available to an eligible individual under a short-term disability insurance policy based on benefits received under the paid leave act. Additionally, it amends Section 120a of the Insurance Trade and Economic Development Amendment Act to enforce similar protections, ensuring that benefits under short-term disability insurance policies cannot be offset by benefits received under the Universal Paid Leave Amendment Act, regardless of the policy's jurisdiction.