California Repeals 60-day Limitation on Waiting Periods

Until recently, California had a state insurance law that prohibited insurance companies and/or employers from imposing a waiting period in excess of 60 days.  This state insurance law caused a lot of confusion due to the fact that the Affordable Care Act (ACA) permits waiting periods of up to 90 days.   California recently passed a new law which repeals the state insurance law that imposed the 60-day limitation.  The new law is effective January 1, 2015.  This will permit employers with ACA-compliant waiting periods to apply these waiting periods in California as well as other states.  

If you have additional questions regarding this development, please contact your ADP Resource HR Business Partner.