Final Regulations Released on the 90-day Waiting Period Limit
• On Feb. 20, 2014, the Departments issued two rules on the 90-day waiting period limit.
• The rules apply for plan years beginning on or after Jan. 1, 2015.
• A one-month orientation period is a permitted eligibility condition.
• Rehired employees may be required to satisfy the waiting period again.
For plan years beginning on or after Jan. 1, 2014, the Affordable Care Act (ACA) prohibits group health plans and group health insurance issuers from applying any waiting period that exceeds 90 days.
On Feb. 20, 2014, the Departments of Labor (DOL), Health and Human Services (HHS) and the Treasury (the Departments) released final regulations
on the 90-day waiting period limit. These regulations generally finalize provisions in proposed regulations issued in March 2013, with minimal changes.
At the same time, the Departments released a separate proposed rule
regarding a new provision permitting orientation periods under the 90-day waiting period limit.
The final regulations apply for plan years beginning on or after Jan. 1, 2015. For plan years beginning in 2014, the Departments will consider compliance with either the 2013 proposed regulations or the final regulations to constitute compliance with the 90-day waiting period limit requirement.
FULL ARTICLE HERE