Cost Impact – 60-day Waiting Period

The waiting period is the period of time set by an employer before coverage becomes effective for a new employee enrolling into the group’s health benefit coverage. In California the limit is 60 calendar days (AB1083), which is shorter than the federal 90-day limit. The waiting period provision applies to grandfathered and nongrandfathered plans. It went into effect January 1, 2014, for new groups, and on or upon renewal. The cost impact is that employers may be paying premiums for employees earlier than they previously did.