Waiting Periods and Self funded Plans

[Guest Cgross]

Is there a limit as to how long a waiting period can be for a self-funded plan?

I have checked and can find nothing to prohibit a 6 month waiting period but thought I'd see if anyone can verify.

(We know it can't be counted as a break in coverage.)

[mroberts]

You as the employer determine the waiting period. If you want it to be 12 months you can. Why is having a 6 month waiting period not a good idea, however? Your attraction efforts are definitely going to be hampered. If someone leaves his or her job to come work for you and needs to elect COBRA for medical insurance, he or she could be looking at between $1500 and $4500 post tax to continue coverage through the previous employer. Unless you're paying well above market value for all your positions, most people will figure out that it's not worth working for you.