The Short-Term Disability Insurance Benefit Protection Clarification Temporary Amendment Act of 2026 aims to enhance 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, ensuring that individuals are not penalized by their insurance providers for utilizing paid leave benefits.

Additionally, the bill amends existing laws to make the prohibition on reducing benefits under private market short-term disability insurance policies enforceable. Specifically, it updates the language in both the Universal Paid Leave Amendment Act and the Insurance Trade and Economic Development Amendment Act to clarify that insurers cannot reduce benefits based on the paid leave received. The amendments also define terms such as "eligible individual" and "self-insured employer" in alignment with the Universal Paid Leave Amendment Act, thereby reinforcing the protections afforded to individuals under this legislation.