An expectation that these interim guidelines would also apply at least through the end of 2014 was also noted.

Effective with your next renewal beginning on or after January 1, 2014, a group plan is prohibited from applying a waiting period that exceeds 90 days. Notice 2012-59 now explains that as long as other conditions for eligibility are not designed to avoid compliance with this provision, an employer may exceed the waiting period without violating the law in certain situations.

An example is an employer who cannot determine whether a new hire will consistently average enough hours to meet their benefit eligibility requirement. As explained in our blog on Notice 2012-58, the employer can apply a measurement period between 3-12 months. If, after looking back on that measurement period the employee met eligibility, no violation occurred so long as coverage is effective within 13 months of that employee’s start date (plus a few days if other than the first day of the next calendar month).

Additional scenarios were provided with this update. Contact us directly if you have specific questions about your company policy under this PPACA provision.