“I’ve had to reduce my waiting period because of Health Care Reform. So, what’s the story with this new 30 day Orientation Period that I can add to the waiting period and when can that start?”

“On June 20, 2014, the Departments of Labor (DOL), Health and Human Services (HHS) and the Treasury released new final regulations on application of the 30-day orientation period under the 90-day waiting period limit, [60 days in California]. The proposed regulations had provided that one month be the maximum allowed length of of any reasonable and bona fide employment-based orientation period. If a group health plan conditions eligibility on an employee’s having completed a reasonable and bona fide employment-based orientation period, the eligibility condition would not be considered to be designed to avoid compliance with the 90-day waiting period limitation requirement.”

“But compliance with these final regulations is not determinative of compliance with Section 4980H of the Code (employer mandate), under which an applicable large employer may be subject to an assessable payment if it fails to offer affordable minimum value coverage to certain newly-hired full-time employees by the first day of the fourth calendar month of employment.”

“These final regulations apply to group health plans and health insurance issuers for plan years beginning on or after January 1, 2015.”

Larry Grudzien Attorney at Law, www.larrygrudzien.com