We have been getting many questions lately regarding the waiting period for Health Care Reform. We want to set the record straight as this is definitely a confusing topic as different outlets will tell you different things. For those of you following along with the Health Care Reform, you may be aware that the waiting period was revised to 90 days maximum at the FEDERAL level. If you live in California however, your waiting period has been reduced even further to 60 days maximum.
When did this happen?
California’s Governor, Jerry Brown signed AB1030 into law September 30, 2012, but it does not take effect until January 1, 2014.
And what exactly does California’s 60 day waiting period mean anyway?
As we all know, most waiting periods are Hire Date + Set Amount of Days/Months + First of the Following Month. Now the maximum it can be is Hire Date + 60 Days.
Doesn’t that mean that if we do a full 60 days, that someone would start coverage mid-month?
Yes, that’s exactly what it means!
Would they be expected to pay the whole month?!
No, it would be prorated to the days actually covered.
But it’s easier administratively for it always to be the first of the month!
We definitely see your point here. One thing you could do is make your waiting period Hire Date + 30 Days + First of Following. The only day you would have to watch out for is if you hire someone on July 2nd, as July and August both have 31 days. As a result, someone hired July 2nd + 30 days = August 1st + first of following = September 1st which would be a 61 day waiting period.
Please contact us with any questions, we are here to help!
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