Visitor Question

What happens to my medical payments if the company is sold?

Submitted By: Roxie (Illinois)

I lost my leg through an accident at work. I received a low lump sum settlement years ago. The one thing I got out of it was open medical. It pays for prosthetics and the pain doctor I see. I also had two other corrective amputations and they paid for the surgeries. I have R.S.D. which boils down to severe nerve damage.

It hasn’t been easy to get what I need done, but so far, sooner or later it gets taken care of. I live in Illinois and the retail food store I worked for is closing. It was purchased by a large supermarket chain around 2009 and with that my obligation. That is what I was told. I have nothing in writing.

So what happens when this company closes? Do my benefits continue? The holding company is Safeway, Inc. I have one of their insurance cards. I never worked for Safeway I worked for the other small retail store. Will my benefits continue?

Disclaimer: Our response is not formal legal advice and does not create an attorney-client relationship. It is generic legal information based on the very limited information provided. Do not rely upon the information in our response, or anywhere else on this site, when deciding the proper course of a legal matter. Always get a personalized case review from a local attorney.


Dear Roxie,

You have nothing to worry about. Your original employer isn’t the organization responsible for paying your open medical and related bills. Your original employer’s insurance company is the organization responsible for your medical bills, etc. They will continue your workers compensation benefits until your treatment ends.

This is true even if the holding company is Safeway Inc. While it’s possible Safeway is using the same insurance company as your original employer, whether they are or not shouldn’t matter at all.

Moreover, even if the insurance company were to go out of business, your benefits would still continue. All insurance companies are legally required to pay into an insurance “pool.” The pool’s purpose is to continue to pay the obligations of a defunct insurance company.

Contact the insurance company representative assigned to your claim. While there shouldn’t be any problem, speaking with the insurance representative should make you feel more at ease.

The above is general information. Laws change frequently, and across jurisdictions. You should get a personalized case evaluation from a licensed attorney. Find a local attorney to give you a free case review here , or call (888) 647-2490.

Best of luck,

Published: November 10, 2013

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