Eligible Employee

Updated: 29 February 2024

What Does Eligible Employee Mean?

An eligible employee is a worker who has spent twelve or more months on a job or rendered 1,250 hours or more of service for a company.

Under American law, these workers are entitled to employer-sponsored health insurance coverage.

Insuranceopedia Explains Eligible Employee

All eligible employees are entitled to the health coverage sponsored by their employers. If, however, eligible employees have adequate personal health insurance, they can opt out of their employer's group health insurance plan.

Certain categories of workers are considered not eligible, regardless of the amount of work they have put in. These include, among others, contractual workers, interns, and temporary workers. Federal employees are also ineligible; however, the government provides for their insurance needs so this does not put them at any disadvantage.

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