90 Day Mandate One Month Orientation Now Allowed

As an employer, the new rules allow a maximum 90 day watching period for new full-time hires before they are required to have health insurance coverage. The challenge with this specific regulation comes with the in-congruence between a hire date, which may be any time during a month, and the date which employee’s insurance can go into effect, typically the 1st of any given month.

For example, if Joe Smith were hired on June 15th, his 90 day health coverage eligibility would place him at September 15th to receive his benefits. However, for most plans, employees benefits can only be added to a policy on the 1st of the month, making his eligibility actually on October 1st. The Affordable Care Act has added a provision of up to  one month orientation, following date of hire, for leeway. This allows employees to begin the 90 day waiting period on the first day of the month after they are hired, in order to easily standardize benefit effective dates and to meet the regulation.