Moving two benefit plans onto one, on a date employees can plan around.
After a deal closes, two carriers, two plan years and two sets of rules still have to become one. Done well, employees barely notice and the company ends up with one plan, one cost and one administrator. Done badly, it produces duplicate premiums, coverage gaps and a lot of calls to HR. We plan the combination so each decision has an owner and a date.
Six parts of combining benefit plans.
Map Both Plans
Carrier, plan year, funding, eligibility and contribution for each plan, side by side. Decisions come after the map.
Choose Carrier and Funding
The combined group may fit a different carrier or funding structure than either company had alone.
Align Contributions and Eligibility
Different rules for the same job are hard to explain. We help you decide what to align and when.
Connect Systems and Payroll
Enrollment, payroll and carrier feeds all have to agree on who is covered.
Compliance After Combining
Headcount, reporting and notices can change when two employers become one.
Communicate With Both Groups
Each group hears the change differently. We write for each.
Three starting points, depending on where you are.
Two Plans, Two Renewal Dates
Decide whether to wait for the earlier renewal, align both, or keep both for a defined period.
Employees Are Asking What Changes
Publish the date, what changes and what stays the same before rumors fill the gap.
Costs Are Higher Than the Model
Find out what drove it, then which levers can bring it back.
The questions integration teams ask us.
Plain answers for HR and finance leaders combining two companies.
How Long Does It Take to Combine Two Benefit Plans?
Often until the next plan year, because carrier contracts and enrollment follow a calendar. Moving earlier is possible and should be a decision, not a default.
Should We Keep Both Plans for the First Year?
It is common and often sensible. It costs more to administer and can create unequal treatment between groups, so set an end date and tell employees.
How Do We Decide Which Plan Wins?
Compare cost, network, design and what employees value, not which company is larger. Sometimes neither plan is right and a third is better.
What Happens to Employees’ Deductibles Mid-Year?
If employees move plans mid-year, deductible credit depends on the carriers and the contract. Ask for credit in writing before agreeing to a date.
Do We Need to Tell Employees Before Open Enrollment?
Yes. People need time to compare and choose, so announce the plan as early as the decision allows.
How Do We Handle Different Contribution Levels?
Pick a target, then decide whether to move everyone at once or phase it in. Large jumps for one group are the main source of complaints.
What Happens to Retiree or Legacy Benefits?
They depend on the promises made and the plan documents. See the retiree benefits guide.
Will the Combined Group Qualify for Different Plans?
Often. Size, funding and carrier availability change with group size, so re-shop rather than assuming either existing plan.
Who Should Own the Integration?
One named person in HR with authority to decide, supported by finance and a broker. Shared ownership usually means slow decisions.
How Do We Get Started?
Send both plan summaries and the closing date, and we will map them and propose a timeline. There is no cost and no obligation.
Ready? Upload your renewal, or talk it through with someone first. No cost, no obligation.
General information about post-merger benefits integration, not legal or tax advice. Plan-specific questions belong with your counsel and tax advisor, and we will bring them in.
Where this connects.
Transactions and Turnarounds
The full section: deals, integration, carve-outs and turnarounds.
Mergers and Acquisitions
Benefits advice for buyers, sellers and merging companies.
Carve-Outs and Divestitures
Standing up a plan for a business leaving its parent.
Send us your renewal.
We’ll tell you whether it looks competitive, where we see opportunity, and the five questions we’d put to your carrier. No cost, and no obligation to move anything.
The renewal letter
Your current plan summary
Contribution split by tier
Enrolled counts by tier
Four documents, two more if your group is 50 or more. Nothing else; every extra one is a reason to postpone.
An independent employee benefits consulting firm. We look at the entire benefits program — cost, plan performance, risk and administration.
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