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Recovery of Value of Insurance Fund following Sale of Business

Accumyn reviewed and critiqued a dispute involving sale of a business – and it’s existing self-funded employee benefits plan – to an unrelated third party. The entity was sold in the middle of a multiyear funding approach for the self-funded plan, in which the seller had established significant deposit reserves, as required by the insurance carrier. Some months later, as the self-funded plan came to an end, the calculations by the insurance carrier generated a significant refund of premium to the buyer of the business, and the buyer refused to compensate the former owners of the business for the experience of the self-funded plan during their ownership tenure. Accumyn re-calculated losses for pre-sale and post-sale, adjusted for changes in employer and employee contributions and calculated the amount due seller from the refunded premium and deposits, and provided an expert witness report which was used to settle the matter to our clients satisfaction.