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Health Reform-Related Due Diligence Considerations for Buyers


If you are in the market for a merger or acquisition, the Affordable Care Act of 2010 (ACA) opens up a new area to explore when performing due diligence on potential targets: employee health benefits. These have not typically come under scrutiny during due diligence, but the Shared Responsibility penalty specified in the ACA (which could be up to $2,000 per employee), along with other ACA-related issues, means health benefits are now worthy of a closer look.

The potential Shared Responsibility penalty involves more than simply knowing the target’s number of full-time employees (FTEs) and whether they are offered health benefits. And a number of other issues – including potential fees and taxes, which employees are eligible for coverage or how the coverage is paid for – apply regardless of the target’s size.

Know the questions to ask and the specifics to look for to make informed deal decisions and avoid post-close surprises by downloading Health Reform-related due diligence considerations for buyers.

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