Maximum 60-Day Waiting Period Mandate Starts 1/1/14

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Corporate Strategies Inc
Martin Levy, CLU/RHU
October 18, 2013

Starting January 1, 2014, the maximum waiting period for eligible employees in new or renewing California group plans is 60 calendar days. A waiting period is the amount of time an eligible employee has to wait before coverage starts.

This is for new or newly eligible employees and applies to all fully insured medical plans regardless of employer size.

The state mandate also includes a special rule about individuals in a waiting period greater than 60 days and prior to the renewal date. If the employee is subject to a waiting period that exceeds 60 days and is within 60 days of the group's renewal date, the employee must be given the

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opportunity to elect coverage no later than the group's renewal date.

Note that this mandate applies to all insurance policies issued in the state of California and to all California residents regardless of the state in which their insurance contract is issued.
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