As 2014 nears, small employers should begin to prepare for more and more of the Affordable Care Act (ACA) requirements they will need to comply with.
One of the important changes that will affect groups on their first renewal date in 2014 is the change of waiting periods on their insurance contracts. Effective in 2014, no benefit eligibility waiting period can exceed 90 days. This means that the large majority of employers will need to revise their current insurance contracts at their 2014 renewal to ensure they are in compliance. Most insurance carriers will not automatically update the group’s waiting period so it is in compliance without guidance from the employer, so be sure to review any carrier requirements during your renewal process.
The longest waiting period that a group can implement for insurance benefits is either one where benefits will begin on the 91st day of full time employment or the 1st of the month following 60 days of employment. Each employer needs to evaluate the pros and cons of each type of waiting period as it will affect no only how the insurance carriers bill you for the premiums due, but also how the employee is added and removed from the policy at their termination.
Employers should also review their Section 125 Cafeteria Plan to ensure it all reflect the most accurate benefit information as well as the updated waiting period.
Please contact our office for further guidance on the ACA requirements that will affect your business and how you can ensure you are compliant.