-- Uncover hidden liabilities -- medical and dental benefits usually have the greatest impact on costs, opportunities and employee relations. But all benefit programs, including disability, time off, retirement and voluntary benefits, should be vetted. -- Continuing COBRA coverage -- if the seller maintains health insurance coverage after the sale, it also must continue COBRA coverage to affected employees under the federal law that requires employers to extend coverage to former employees up to 36 months. "Employers should create contract provisions for all parties to access each other's COBRA-eligible plan documents and records -- including notifications, eligibility, elections, waivers and payments -- for at least 36 months after the sale date," he writes. -- Unique hospital opportunities -- Hospitals and healthcare systems are unique when it comes to benefits evaluations in mergers and acquisitions because of their dual roles as employer and provider of healthcare services for employees. "Some healthcare organizations have taken advantage of their dual role. In a merger, these advantages can be magnified or modified to achieve the goals of both human resource departments and the CFO," he writes."If M&A due diligence regarding the employee benefit programs is thorough and considers all of the post-combination effects on all stakeholders, the transaction should close and appear seamless. Leaders may even get a pleasant surprise. The resulting employee program may produce economies and advantages that weren't anticipated. Your strategy and actions will determine whether you get an unexpected bonus or a rude shock," he writes. The full article can be read online at http://www.hhnmag.com/hhnmag_app/jsp/articledisplay.jsp?dcrpath=HHNMAG/Article/data/02FEB2008/080219HHN_Online_Haraden&domain=HHNMAG. Serving organizations in New England and nationally, Longfellow Benefits provides employee benefits, retirement plans and executive benefits. Its staff includes experts carrying top professional designations: Registered Employee Benefit Consultant (REBC), Chartered Life Underwriter (CLU), Registered Health Underwriter (RHU), Licensed Insurance Advisor (LIA), Master of Business Administration, Taxation (MBA), Certified Employee Benefits Specialist (CEBS), Certified Financial Planner (CFP®), Chartered Financial Consultant (ChFC) and Accredited Investment Fiduciary (AIF®). For more information, visit www.longfellowbenefits.com or call 617-351-6000.
Contact Information: Contact: Henry Stimpson Stimpson Communications 508-647-0705 HStimpson@StimpsonCommunications.com