Our hotel is currently entering a transition stage with management, our new insurance will not kick in for our employees until 45 days after the new company takes over. Therefore, our associates will not have insurance for 2 months. We are wondering if they will be penalized for this gap? If not, what are the proper steps they must take to not be penalized?

Any information will be helpful, as we have 200 employees who will be uninsured as of June 1st.


Employers can have a 90 waiting period for new hires, but if they are required to provide coverage must provide it every month or pay a monthly fee. The employees themselves will be able to take an exemption on form 8965 - Health Coverage Exemptions for not having coverage for less than 3 months. So in basically the employer may get a fee, but the employees shouldn't be penalized.

The above being said there may be some sort of rule for transitioning management. We can look into it further and see if we can come up with anything. If you have further information please feel free to post it below.

See our page on the employer mandate for more money about how the fee works.

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