In the realm of employee benefits, one of the most crucial offerings by employers is group health insurance. It's a cornerstone of attracting and retaining talent, as well as ensuring the well-being of employees. However, a common practice among some employers involves imposing a waiting period before new hires can enroll in the company's health insurance plan. Traditionally, this waiting period was set at 90 days prior to the Affordable Care Act in 2014. While this might seem like a straightforward approach, there are significant drawbacks that both employers and employees should consider after the law was put in place.

The Affordable Care Act made it illegal to have a health insurance waiting period of more than 90 days. Prior to this, many employers would allow their employees to come onto their group health insurance plan on the 1st of the month following 90 days of employment. The 90-day waiting period in the law essentially means that new hires must wait exactly 90 days to eligible for health insurance coverage, and no longer than that. It is illegal to have a health insurance plan that allows employees to come onto the plan the 1st of the month following 90 days, as that would make them eligible more than 90 days after they started working for you.

Firstly, and perhaps most critically, is the timing of coverage initiation. If a new employee starts mid-month and the waiting period is set at 90 days, their health insurance coverage won't begin until mid-month three months from their date of hire. This creates a problematic scenario where the employee is either left without coverage for a portion of the month or faces having to pay for double insurance coverage for that month so they do not have a gap in coverage. Short term health insurance plans also went away when the Affordable Care Act was signed, so a gap plan is not possible either any longer.

Moreover, from a strategic standpoint, imposing a 90-day waiting period can hinder an employer's ability to attract top talent. In today's competitive job market, where employees have a myriad of options, offering immediate access to health insurance can be a powerful incentive. Potential candidates may view a lengthy waiting period as a red flag and opt for opportunities with more immediate benefits.

The recommended legal waiting period options for insurance would be:

1. **1st of the Month Following Date of Hire:** This approach ensures that all new hires have access to health insurance from the beginning of the month following their start date, regardless of when in the month they join the company. It eliminates the risk of coverage gaps and simplifies the enrollment process.

2. **1st of the Month Following 30 Days:** This option strikes a balance between immediate coverage and administrative feasibility. Employees become eligible for health insurance on the first of the month after completing 30 days of employment, providing a reasonable waiting period without undue delay.

3. **1st of the Month Following 60 Days:** Similar to the 30-day waiting period, this approach offers a slightly longer timeframe for those employers who would like to make sure the employee works out at their company before offering coverage. This also most closely aligns with the typical 90 day new hire probationary period a lot of employers follow.

So while the 90-day waiting period for group health insurance may have been a standard practice in the past as it allowed insurance to starts on the 1st of the month following 90 days of employment, can not do this anymore and the above three waiting period options are what we recommend from a practical stand point.