· 43% increase in expected total lives on active exchange, for an anticipated 1.5 million lives
· Close to half of new employer customers are new to Mercer’s health segment
Mercer, a global leader in talent, health, retirement and investments and a wholly-owned subsidiary of Marsh & McLennan Companies (MMC), announced today that its Mercer Marketplace private benefits exchange continues to grow in both individual participants and numbers of clients. The exchange now serves more than 300 companies with 703,000 eligible employees and retirees, with an anticipated 1.5 million lives. More than 200 companies offer Mercer Marketplace to their active employees for health care and additional benefits. (See Figure 1.)
“We are pleased to show growth in both number of clients and number of participants for Mercer Marketplace, as it continues to become the private benefits exchange of choice for the workforce of tomorrow,” said Julio A. Portalatin, President and Chief Executive Officer of Mercer. “In addition to growth, we have proven the ability to deliver a satisfying customer experience through our high touch call center combined with sustained rates of savings. This is what makes our solution the new standard for high performing organizations in offering modern health and benefits solutions to their employees.”
The Mercer Marketplace medical plan cost savings have proven to be sustainable. Medical plan savings in the first year can be as much as 15%. Second year savings for the initial group of Mercer Marketplace clients demonstrate significant reductions in medical plan cost trend, with just a 1.5% medical cost average increase in year two. This is well below the 4.6% cost increase experienced by companies according to the annual Mercer National Survey of Employer-Sponsored Health Plans.
In addition, the user-experience for Mercer Marketplace participants and their dependents remains high, with a customer satisfaction rate of 96% for those who call its state-of-the-art center. This high satisfaction builds upon the 94% rate achieved in 2014.
“The unique design and flexibility of Mercer Marketplace is helping companies solve the complex challenges of an increasingly difficult healthcare environment and also making a real difference in people’s lives,” said Sharon Cunninghis, Global Leader of Mercer Marketplace. “The entire Mercer Marketplace solution – from the broadest selection of coverage and online decision support tools to our bilingual Benefits Counselors and ‘best coverage for you’ methodology – is truly helping more and more people make better benefit and insurance choices for their specific needs.”
While existing Mercer clients continue to be interested in Mercer Marketplace, close to half of the new clients on the exchange for 2016 are new to Mercer’s health and benefit offerings. This reflects a significant increase from the prior year, when approximately a quarter of clients were new. Companies also continue to use Mercer Marketplace to offer standalone voluntary benefits and individual medical plan coverage, which many see as increasingly valuable to their employees.
Additional enrollments for 2016 will continue throughout the remainder of 2015 and a portion of 2016.
Figure 1 – Breakdown of Mercer Marketplace Sales
Source: Mercer, October 2015
In summary, across both active and retirees, Mercer Marketplace will offer access to benefits to an anticipated1.5 million lives in 2016.
To learn more about Mercer Marketplace, please visit www.mercermarketplace.com.
Mercer is a global consulting leader in talent, health, retirement and investments. Mercer helps clients around the world advance the health, wealth and careers of their most vital asset – their people. Mercer’s more than 20,000 employees are based in 43 countries and the firm operates in over 140 countries. Mercer is a wholly owned subsidiary of Marsh & McLennan Companies (NYSE: MMC), a global professional services firm offering clients advice and solutions in the areas of risk, strategy and people. With 57,000 employees worldwide and annual revenue exceeding $13 billion, Marsh & McLennan Companies is also the parent company of Marsh, a leader in insurance broking and risk management; Guy Carpenter, a leader in providing risk and reinsurance intermediary services; and Oliver Wyman, a leader in management consulting. For more information, visit www.mercer.com. Follow Mercer on Twitter @Mercer.