Is it possible that the Cadillac Tax will be a major health spending cost ‘deflator’?
Most employers are now aware that the group medical insurance waiting period for full-time (30 hours or more per week) employees may not exceed 90 days as a result of one of the provisions of the Affordable Care Act. In California, there is a more stringent 60 day waiting period limitation. The California requirement is currently under review and may see changes in-line with the Federal requirement.
Violation of the 90-day waiting period limitation may carry a $100 penalty per day per failure in the form of an excise tax. Please read more about this requirement and how to apply the waiting period to variable hour employees here.
Beginning December 31, 2014 certificates of creditable coverage will no longer be required of group health plans.
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