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3.0 from 215 votes

Mercer reports strong growth in health and benefits co-sourcing market

Date: June 9 2011

Norwood, MA, June 9, 2011
Mercer, a global leader in benefits administration outsourcing, announced today that it has experienced significant new business growth in its benefits co-sourcing segment, adding 12 new clients in the first quarter. This represents a 140% increase compared to the same time period in 2010.

“So far, many employers who administer their benefit plans in house have been able to accommodate some of the early health care reform provisions such as covering dependents up to age 26,” said Jim Zedella, Health & Benefits Small and Mid-Market Business Leader for Mercer’s US Outsourcing business. “However, there are much more complex provisions, including state exchanges, on the horizon and in-house companies are realizing more and more that that their own resources alone will no longer suffice. We see this dynamic as a key driver in the growth of our benefits co-sourcing solution.”

Mercer’s benefits co-sourcing solution provides employers with a leading technology platform, including an enrollment system that is customized to a client’s plan offering and an employee website to facilitate online enrollment. Through a co-sourced arrangement, Mercer also takes over managing vendor files and related issue resolution on behalf of the client. Call center services can also be added for those employers who cannot handle increased volume of participant inquiries. These administrative services are typically bundled with Mercer’s brokerage services to manage insurance carrier relationships. Mercer also offers other administration support services along with a range of fully outsourced solutions for employers looking for more support.

“Villanova University recently completed an RFP for health and welfare consulting and administrative services. Mercer was selected from 17 vendors that bid on the business based upon their depth of knowledge, systems and people. Following this year's Open Enrollment, it was clear that the University made the right decision," said Ray Duffy, Director of Benefits for Villanova University, another client recently added to Mercer’s roster. "I would highly recommend Mercer's consulting and administrative services to any company looking for a partner that will help them navigate the changing environment of benefits administration.”

Mercer currently services over a thousand employer groups and 1.1 million participants on its co-sourcing platform.

About Mercer
Mercer is a leading global provider of consulting, outsourcing and investment services. Mercer works with clients to solve their most complex benefit and human capital issues, designing and helping manage health, retirement and other benefits. It is a leader in benefits outsourcing. Mercer’s investment services include investment consulting and multi-manager investment management. Mercer’s 20,000 employees are based in more than 40 countries. The company is a wholly owned subsidiary of Marsh & McLennan Companies, Inc., which lists its stock (ticker symbol: MMC) on the New York and Chicago stock exchanges. For more information, visit