What is Benefits "Eligibility"?

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This video explains the concept of eligibility or waiting periods for health insurance at a new job:

  • When you start working at a company, there is often a waiting period or eligibility period before you can enroll in the insurance they offer.

  • To become eligible for insurance, you typically need to meet two criteria: (1) have worked at the company for a set period of time, such as 30, 60, or 90 days, and (2) work a certain number of hours per week, typically 20-30 hours or more.

  • Eligibility is sometimes referred to as a "waiting period," and it essentially means the time you have to wait before you can join the company's insurance plans.

  • Here’s the reason behind waiting periods: they encourage employees to stay with the company long enough to benefit from the financial advantages that the insurance plans provide. Insurance and benefits can be costly for employers, so waiting periods help ensure that employees remain with the company for a significant duration, justifying the expense of providing insurance coverage.