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Home > Resources > Mergers & Acquisitions > The Affordable Care Act During M&A Due Diligence

The Affordable Care Act During M&A Due Diligence

December 5, 2018 By Jim Paul

The Affordable Care Act is still a concern during an M&A transaction. In this podcast, Jim Paul explains why.

Transcript

The Affordable Care Act is still out there. Penalties for individuals were repealed, but employer penalties are still in effect. The IRS has started sending out letters for 2015 and we’ve seen some very large proposed assessments with six-figure penalties.

So if you’re representing buyers or sellers in mergers and acquisitions, here are a couple of things to keep in mind:

  • First, confirm how reporting will be handled for the year of the acquisition and beyond.
  • Second, make sure you get answer to these questions during due diligence:
    • How was employee eligibility determined for prior years?
    • Was proper health coverage offered to eligible employees as required?
    • Has proper reporting been done?

Buyers may need to respond to penalty notices for prior years, and all parties will want to make sure that proper data and documentation is maintained. We can help with compliance questions and due diligence.

This podcast is for general information purposes only. It does not create an attorney-client relationship between the Employee Benefits Law Group and the listener or reader and it does not constitute legal advice for a specific situation. If you need specific guidance on this topic, let’s start a conversation.

Mergers & Acquisitions Blog

About Jim Paul

Jim has done almost everything in the employee benefits arena, from 401(k) plan compliance and corrections to executive compensation, due diligence and counseling employers on benefits issues in mergers and acquisitions. The problems that he has not solved are few and far between. His clients rely on him for practical, efficient, effective guidance.
Learn More About Jim

EDITOR’S NOTE: We did the best we could to make sure the information and advice in this article were current as of the date of posting to the web site. Because the laws and the government’s rules are changing all the time, you should check with us if you are unsure whether this material is still current. Of course, none of our articles are meant to serve as specific legal advice to you. If you would like that, please call us at (916) 357-5660.

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