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California 60-Day Waiting Period Limitation Repealed
On August 15, 2014, California Governor Jerry Brown signed Senate Bill 1034 ("SB 1034"), which, effective January 1, 2015, repeals the 60-day waiting period limit imposed on certain health insurance plans in California.
According to an article by, Atkinson, Andelson, Loya, Ruud & Romo, "... In California, AB 1083 and Senate Bill X 1-2 (2013) imposed a maximum 60-day waiting period, effective January 1, 2014. Thus, in 2014, many California employers who provide health insurance to their employees have scrambled to adjust their practices to comply with the more stringent California requirement. SB 1034 repeals AB 1083, allowing California employers to follow and implement the federal ACA regulations regarding waiting period limitations. However, relief is not immediate. Because SB 1034 was not enacted as an "urgency bill," it is not effective until January 1, 2015.
What this means to employers?
California employers should review their policies and eligibility language to determine where they stand in relation to the most recent rule changes. Employers should also check with their insurance carrier as to what options the carrier is offering for its clients. Employers should keep in mind that 90-days is the maximum and that employers may voluntarily implement shorter waiting periods. Finally, employers may consider whether using the orientation period would be to their advantage in 2015, once the 60-day waiting period is repealed in California.