HR Fast Facts: What Is Retroactive Coverage?

Can health insurance be retroactive? Find out here.

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Employees have 30 days from their projected effective date to enroll in health insurance coverage.

If the employee enrolls in coverage on day 29 beyond their effective date, their coverage will be retroactive to their effective date. In other words, the first day of coverage is actually in the past.

For example, if an employee’s effective date is 3/1 and the application isn’t processed by the carrier until 3/15, the employee’s coverage is retroactive to their original 3/1 effective date.

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