What can I do if my husband works at a large drug company that was bought out but our health insurance coverage will change and our insurance deductible was met but will reset?

UPDATED: Oct 1, 2022

Advertiser Disclosure

It’s all about you. We want to help you make the right legal decisions.

We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.

UPDATED: Oct 1, 2022Fact Checked

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

What can I do if my husband works at a large drug company that was bought out but our health insurance coverage will change and our insurance deductible was met but will reset?

My husband works in warehousing for a huge drug company. He has been with them for 15 years as contractor who is permanently placed there. Every 2 -4 years, the drug company re-bids the warehousing contract out and changes to a new company. In 15 years, I believe they have been bid out/bought out about 5 times. This has always happened so that the change occurred to our benefits effective January 1st of the next year. This year, the change is occurring as of the end of June. Many of us had just met our health insurance deductibles and allegedly it will be reset under the new contract’s health insurance plan. Is this legal? We apparently won’t have any information about our health insurance for the first few weeks in July and will have to pay out of pocket and keep receipts and then submit for reimbursement. Most of us cannot afford to even have our health Insurance deductible reset. Do we have any rights here? The HR benefits administrator is clueless so I will be making calls to the new company and the corporate headquarters to fight this but need to know our rights legally.

Asked on June 5, 2019 under Employment Labor Law, North Carolina


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

If, as seems to be the case from how you describe the situation, your husband will be working for a new entity (e.g. a different corporation or LLC) even if in the same position or location, it is legal. His health insurance was through Company A--the insurance contract was between the insurer and Company A. The contract does not transfer to Company B; rather, Company B will put its employees, even ones "inherited" (so to speak) from Company A under a new insurande policy/contract. Therefore, the deductibles, etc. start over. If the identity of your husband's employer changes, then even if he's doing the same job in the same way, it's like he changed jobs and went to a new company; when that happens, you start over with the new company's insurance.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption