About New Hire Waiting Periods

When you add a new hire to Maxwell, the Effective Date for the benefits will automatically be calculated from the Date of Hire (DOH) plus the waiting period indicated at implementation.

This article reviews the different waiting period options supported by Maxwell:

How to view the waiting periods set on a new hire

You can see the Effective Date of the new hire’s benefits by going to their profile, selecting “Review Event”, and clicking Edit Benefits to see the Benefit effective date set on each benefit.

  • In the example below, the waiting period is the first of the month following the date of hire because the date of hire is 4/27/20 and the effective date is 5/1/2020. You’ll want to make sure to click "Save & Return to Profile" at the bottom of the page to go back without ending the enrollment event!

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New hire waiting period options

Maxwell Health supports seven different waiting periods, which are all listed as options at implementation.

  • Date of Hire (DOH). 
    For example:
    DOH = October 1, Effective Date = October 1
    DOH = October 15, Effective Date = October 15

  • Date of Hire (DOH) plus the number of days/months of your choice. Please note that the DOH counts as one of the calendar days. 
    For example:
    DOH = October 1, Effective Date = November 1 (for plus 30 days)
  • First of the month following DOH - coinciding with current month. This means that if the DOH is on the first of the month, the employee will be eligible that day.
    For example:
    DOH = October 1, Effective Date = October 1
    DOH = October 15, Effective Date = November 1
  • First of the month following DOH - not coinciding with current month. This means that if the DOH is on the first of the month, the employee will be eligible the following month.
    For example:
    DOH = October 1, Effective Date = November 1
    DOH = October 15, Effective Date = November 1
  • First of the month following 30 calendar days, 45 calendar days, 60 calendar days, 90 calendar days, or 3 months after DOH - coinciding with current month. This means that if the 30th calendar day (for example) lands on the first of the month, the employee is eligible that day. Please note that the DOH counts as one of the calendar days.
    For example (for 30 days):
    DOH = October 1, Effective Date = November 1
    DOH = October 3, Effective Date = November 1
    DOH = October 15, Effective Date = December 1
  • First of the month following 30 calendar days, 45 calendar days, 60 calendar days, 90 calendar days, or 3 months after DOH . This means that If the 30th calendar day (for example) lands on the first of the month, the employee is eligible the following month. Please note that the DOH counts as one of the calendar days.
    For example (for 30 days):
    DOH = October 1, Effective Date = November 1
    DOH = October 3, Effective Date = December 1
    DOH = October 15, Effective Date = December 1

Please note: The Affordable Care Act (ACA) mandates that employers cannot wait more than 90 calendar days to offer medical insurance coverage to eligible employees. For this reason, the system will cap the New Hire Waiting Period to 90 days from the employee's date of hire.

Rehire waiting period and Rehire provisions

Depending on the circumstances, benefit plans may have different requirements around waiting periods when employees are rehired within a certain timeframe. Additionally, certain benefits with late entry or guaranteed issue requirements (like a Voluntary Life plan) may work differently depending on the timeframe in which the employee returns.

If a rehire provision exists for your benefits, the following will be captured during your implementation in Maxwell:

  • Rehire provision timeframe: The time between the employee’s date of termination and the rehire date during which the employee would be subject to certain rehire provisions with the carrier.
  • Rehire waiting period: The waiting period before benefits become effective that would apply for an employee that has been rehired within a rehire provision timeframe.

If an employee is rehired within the rehire provision timeframe for a benefit:

  • The rehire waiting period set on the benefit will apply 
  • The employee will be treated as a late entrant if they waived voluntary benefits during their previous employment offering.
  • The employee will see the pre-approved amount equal to their previously enrolled amount if they enrolled in voluntary benefits during their previous employment offering.

If an employee is rehired outside of your rehire provision timeframe:

  • The employee will be treated as a new hire in Maxwell and will follow the same new hire waiting period rules based on their eligibility group.

Please note: If you need to override rehire provision rules for an individual that you have rehired in Maxwell, you still have the ability to manually adjust the effective date of benefits or approve voluntary amounts as needed.

As a reminder, rehire provisions for your benefits will be captured by your Advisor at the time of implementation. If you do not yet have rehire provisions setup in Maxwell, but would like to enable rehire provisions on your existing benefits in Maxwell prior to your next renewal, you can reach out to the Maxwell Health Support team to get those added.

Extended new hire waiting period (Currently in Beta)

For employers who offer employer paid benefits (non-contributory), Maxwell is currently in a beta period to provide the ability to include new hire waiting periods that extend one year or beyond.

Requirements to utilize an extended new hire waiting period:

  • Plan must be an employer paid benefit (non-contributory)
  • Contract for the plan must extend longer than one plan year.
  • A rate lock must be in place for the length of the plan contract.
  • The carrier for the plan must not change through the extended benefit timeframe.

Reach out to your Advisor or your Maxwell implementation consultant (implementation@maxwellhealth.com) if you have questions or would be interested in participating in the beta and setting up an extended waiting period for your employer paid benefits.
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If you see an effective date for a product that's not consistent with the indicated waiting period selected by your Advisor, please contact Maxwell Customer Support at support@maxwellhealth.com or call (866) 629-7445.

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