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