Thursday, February 20, 2014

Final rule on waiting periods for employer-sponsored healthcare plans

HealthcareThe Departments of Labor, Treasury, and Health and Human Services have announced the publication of final regulations implementing a 90-day limit on waiting periods for employer provided health coverage. 

The final regulations require that no group health plan or group health insurance issuer impose a waiting period longer than 90 days after an employee is otherwise eligible for coverage. The rules do not require coverage be offered to any particular individual or class of individuals, and it doesn't affect non-time-period conditions for eligibility, such as meeting certain sales goals, earning a certain level of commission, or successfully completing an orientation period. Requiring employees to complete a certain number of hours before becoming eligible for coverage is generally allowed as long as the requirement is capped at 1200 hours. The rules also address situations in which it cannot be determined that a new employee will be working full-time.

The departments are issuing a companion proposed rule for comment. That rule  would limit the maximum duration of an otherwise permissible orientation period to one month. This proposal will be open for public comment. Comments must be filed by April 25, 2014.

Both the final and proposed rule are scheduled to be published on Monday, February 24, 2014.

MM

http://lawprofessors.typepad.com/laborprof_blog/2014/02/final-rule-on-waiting-periods-for-employer-sponsored-healthcare-plans.html

Beltway Developments, Labor and Employment News, Pension and Benefits | Permalink

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