Mercer Launches New Private Health Insurance Exchange

Mercer has launched its own private health insurance exchange, developed by Benefitfocus, that will available to employers with at least 100 employees. Called Mercer Marketplace, the exchange will provide access to a broad array of benefits — both traditional and voluntary — from multiple insurance providers, along with education tools and support to help employees customize their choices to better fit their needs, according to the company.

In the exchange — which uses cloud-based technology developed by Benefitfocus — employers will be able to determine how much to contribute toward the cost of their benefits program. They can thus design a competitive benefits program while understanding and controlling the costs associated with a wide range of options. The platform includes full benefits outsourcing and will support employees with call center and online decision support during the enrollment process and beyond.

Mercer's announcement indicates that more and more employers may be re-thinking their benefits strategy and might be more willing to take bolder steps toward controlling costs, especially as ACA compliance requirements - and the burdens associated therewith - start hitting employers' bottom lines in the lead up to 2014.