Many employers may not realize that federal law places a cap on how long eligible employees can wait for health insurance coverage. Introduced as part of the Affordable Care Act (ACA) in 2014, the legislation mandates that the waiting period for employer-sponsored health plans cannot exceed 90 days. While it doesn’t require employers to offer coverage, it does limit how long new hires can be made to wait before being eligible.
This guide explores what the 90-day waiting period is, why it matters, and how employers can remain compliant and strategic, when structuring their health insurance offerings.
What is the 90-day insurance waiting period?
The 90-day period is the maximum amount of time an eligible new hire can wait before joining a company’s group health insurance plan. Once this time frame ends, the employee must be allowed to enroll. According to Paul Foery, former Vice President of Insurance at Beyond:
“The longest allowable waiting period for a group health plan is 90 days. It’s a requirement set by federal law under the ACA.”
Employers don’t have to wait the full 90 days. They can offer coverage starting on the employee’s first day — or anytime before the 90-day limit. The key point is that delaying past 90 days would violate ACA rules.
Should you use the full 90-day period?
Many employers choose not to wait the full 90 days. Offering health insurance sooner can make your company more attractive to candidates, especially those who may have dependents or are comparing offers. When setting up a plan, your broker will likely ask:
- Are there any existing full-time employees who will be enrolled?
- Will you apply a waiting period, and if so, how long (e.g., 30, 60, or 90 days)?
Foery notes:
“Looking ahead to how your workforce might grow is important. A strict 90-day waiting period could make it harder to compete for top talent if other employers are offering faster access to benefits.”
Why employers need to understand the waiting period
There are several reasons why understanding the 90-day limitation is critical:
Compliance: Going over the 90-day window puts the employer in violation of ACA regulations.
Transparency: Clear communication helps set expectations with employees and avoids misunderstandings.
Litigation Risk: If a new hire becomes seriously ill during the waiting period and isn’t offered enrollment on time, it could lead to legal complications.
Foery emphasizes:
“Even though rare, a failure to offer enrollment could open the door to legal action. It’s critical to document when coverage was offered or declined.”
Can waiting periods differ by employee class?
Yes — employers can assign different waiting periods to distinct classes of employees, but the classifications must be non-discriminatory and clearly defined.
Small Groups (typically under 100 employees) usually have fewer options and often apply a single waiting period across the board.
Large Groups (100+ employees) can often set different periods for roles like managers versus hourly staff, as long as they remain consistent and fair.
“Eligibility begins when someone is both a full-time employee (30+ hours weekly) and on the payroll as a W-2 employee,” says Foery.
How to communicate the waiting period
Employers should make the waiting period known:
- During preboarding and onboarding
- In the employee handbook
- Through benefits orientation materials
What about probationary periods?
Some employers implement probationary periods, trial windows used to assess job fit. These may last 30, 60, or 90 days, but they cannot delay when the ACA waiting period begins. The health insurance clock starts ticking from the employee’s first day on the job.
Does 90 days mean 3 months?
No. The ACA defines the limit as 90 consecutive calendar days, including weekends and holidays. That means if a new hire starts on July 1, coverage must begin by September 29, not October 1.
Pro tip: If the 91st day falls o
n a non-workday (like a weekend or holiday), employers must activate coverage on or before that day.
Final thoughts on probationary period insurance
Providing timely access to health insurance is a key way to support your workforce. Understanding and correctly applying the 90-day waiting period helps ensure compliance with the ACA and creates transparency for new hires. It also improves employee satisfaction, trust, and retention.
And if you’re looking to streamline health benefits administration, Beyond can help you manage enrollment, payroll, and compliance from one place, so you can focus on growing your team.
