DIG Insurance & Business Magazine Fall 2018 | Page 8

TRANSITION TIME FOR BENEFITS
Transition Time For Benefits
IF YOU’RE ACQUIRING A BUSINESS, HOW WILL YOU TRANSITION NEW EMPLOYEES
INTO YOUR BENEFITS PLAN?
Y
ou’re in the process of
acquiring a business and the
topic of employee benefits is
on the table. The seller wants
to be sure its people will be
protected. What will happen to employee
benefits when the two organizations
become one? How will the buyer assure
coverage and prevent employees from
having to start over with their deductibles?
After all, the deal close date and benefits
plan year will not happen at the same time.
Many times, a buyer will offer to take over
the seller’s employee benefits contract. The
selling company may be in the middle of
a plan year, and the buyer doesn’t want
employees who will transition into the
organization to face a 90-day waiting
period to get benefits. The seller would hate
to reset the deductible, causin