What is a health insurance effective date?

The effective date for insurance coverage is the date that the coverage is officially active. As of the effective date of coverage, the enrollee can receive services and the insurance carrier will pay out the benefit.

• Effective dates are calculated using the hire date and the company's waiting period.

  Example:

  • A worker is hired on September 27th.
  • Their company has a waiting period of "First of the month after 30 days." 30 days from September 27th is October 27th, and the first of the month following is November 1st.
  • The effective date will be November 1st.