A waiting period is the time a newly eligible employee must wait before health coverage begins. Under the ACA, a group health plan’s waiting period cannot exceed 90 days, so many employers use “first of the month following 30 days” to stay safely compliant.
Waiting Periods
A waiting period is the time duration employees must wait before their coverage becomes effective. Under the ACA, the maximum new-hire waiting period is 90 days from the date of full-time employment. However, small employers might be able to add a one-month orientaion period or a cumulative hours requirement prior to the beginning of the waiting period. And companies with variable-hour employees can impose a one-year initial measurement period during which time they determine full- or part-time employee status.