If a company is sold will the employees lose ther medical insurance?

Answer 1

This totally depends on the new company.

There is no law that requires a purchasing company to continue to offer any benefits to the employees of the old company.

It is totally up to the new company to either keep the same insurance in place, switch plans or drop coverage altogether.

Normally large companies (those over 50 employees) do something called "self-insurance" meaning they pay for the health costs of their employers under a law called ERISA.

When a large company takes over another large company, they normally roll over the 'new' employees onto the successor company's self insured ERISA plan.

Answer 2

Several factors will effect the portability (or continuation) of the health insurance plan from an Co. which has been sold. As a Health Insurance broker in Ca. recently I have experienced companies closing shop and or selling off. Every single one has a different outcome, first in the event that the company closes its doors. The employee may or may not be eligible for cobra benefits, please consult with your broker or contact your local Department of employment. I have witnessed a company that was recently purchased, which most of the prior staff was terminated. Cobra was offered to the terminated employees.

Answer 3

I work at a large insurance company as a supervisor. In most cases, the company that purchases the company picks up the insurance.

In the event this doesn't happen, there's usually what's called a run-out period. This is a period of time after the account closes that the carrier will continue to pay claims.

HOWEVER, be aware that there's no law that says this has to happen. You most likely pay your premiums out of your check on a bi-weekly basis, so your company only has a legal obligation to keep you on a plan for the time period you've already paid into.

Nonetheless, you will by law be given the option to elect COBRA coverage. COBRA is your exact same current policy but instead of just paying your portion of the premium, you'll start paying your portion and the employer's portion (this usually ends up being about 4 times as much, if not more). You will be able to carry this for 18 months.

Answer 4

that's as much as the guy company. The is presently no regulation on the e book that proclaims you ought to pay for, or maybe grant coverage. on a similar time because it was a time-honored area of a repayment equipment that's now used greater to entice and shop high quality workers. My advice is purchase the main suitable and maximum which you would be able to have the money for. (in spite of if that's 0, then so be it) scientific well-being coverage is a warm-button cost ticket recently. offering any variety in any respect makes you a greater appealing enterprise.

Answer 5

Probably not, unless the company closes it's doors. You may have a change in insurance, but not lose it.

Answer 6

It depends. Sometimes if the business is to be discontinued, then yes; but cobra will be offered. If the business is to be rolled into another business, then the new insurance may carry over.

Answer 7

see HIPAA on google.com for more information.

Answer 8

no