Employers often wonder whether they can waive the health insurance waiting period for a new hire.
While employers have the flexibility to set the waiting period—typically 30, 60, or the maximum 90 days—once it is in place, it cannot be waived on an individual basis. If an employee is hired and you wish to bypass the waiting period, you must adhere to the established timeframe and wait until the next open enrollment period to make any adjustments.
In this article, we’ll explore how waiting periods work, why they cannot be waived on an individual basis, and alternative strategies—such as creating designated employee classes—to manage benefits more effectively.
Contact Cosmo Insurance Agency today to speak with a knowledgeable broker and find the best employee benefits package to support your business.
Creating Classes to Manage the Health Insurance Waiting Period
A common approach we see is the use of employee classifications to manage health insurance waiting periods. For instance, employers can establish a separate class for management positions that allows benefits to begin immediately upon hire.
If providing day-one benefits is a key part of an employment offer, creating a designated management class ensures compliance while meeting business needs. When implementing a policy, it’s essential to structure it in a way that accommodates both current and future employees effectively.
Legal Requirements for Health Insurance Waiting Periods
The legal limit for a health insurance waiting period is 90 days, meaning coverage cannot be delayed beyond this timeframe. Previously, waiting periods could extend up to six months, but current regulations have set a firm cap.
If an employee misses the waiting period or if early coverage is desired, the employer must adhere to the terms established in the group policy.
Contact Cosmo Insurance Agency to Learn More About Employee Health Insurance Requirements
A broker at Cosmo Insurance Agency can help you enroll in the best employee benefits package for your company.
Contact us today to speak with an insurance broker about competitive employee benefits that can help you hire and retain top talent.
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