Requirements to Get on a Group Health Insurance Plan
Many employers in the United States provide health insurance to their employees as a part of a benefits package. However, there is often confusion regarding when a new employee is eligible to begin participation. A lack of adequate information can lead to misinformation and larger problems, including financial issues.
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Function
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Health insurance coverage is one of the most important types of insurance a person can purchase. It's almost inevitable that you or a member of your family will require professional medical care at some point, and the cost for even the most basic of treatments increases every year. A health insurance policy provides coverage that pays for medical services rendered to the insured.
Significance
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Having health insurance through an employer-sponsored program is one of the easiest and most economical ways to obtain coverage. In many instances, the employer pays a portion of the total monthly cost for the insurance, bringing an otherwise unattainable policy within reach of the average employee.
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Identification
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Insurance is regulated at the state level, so individual states have slightly different rules and regulations regarding who is eligible for coverage under a group health insurance plan. However, most states have similar legislation.
Employees must be U.S. citizens or be legally permitted to work in the country and must work a minimum number of hours as defined by their state. They must actively work for the company on a regular and consistent basis and cannot simply be silent partners. They also cannot covered by another health insurance policy; most states prohibit duplicate or redundant health insurance coverage from multiple employers.
Insurance companies require employee applicants to provide their Social Security numbers and other identifying information. Some states require additional information before coverage is permitted.
Time Frame
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When employers initially arrange group health insurance policies, they determine the period newly hired employees must wait before they are eligible to enroll in the group health plan. This period can be as short as 30 days or as long as a year. The most common waiting period is 90 days, because most employers believe that three months is enough time to evaluate a new employee and determine whether that worker has the qualifications to remain employed and begin receiving benefits.
Considerations
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It is important that newly hired employees take into consideration the employer's waiting period for group health insurance enrollment. Routine medical screenings or procedures that might be eligible for coverage under the company's plan should be delayed until the policy is in force.
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