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Marsh & McLennan's (MMC) Mercer SelectRx to Lower Pharmacy Spend
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Marsh & McLennan Companies, Inc.’s (MMC - Free Report) sub-unit from the Consulting segment, Mercer, recently introduced Mercer SelectRx in a bid to generate higher savings on specialty drug expenses for employers and their employees.
The new product leverages the proprietary and cloud-based technology platform of Free Market Health and is also built with the power to offer transparency on specialty pharmacy pricing. Specialty prescriptions are directed to the platform consequent to which a comparison is made among an organized network of specialty pharmacies and the one quoting the lowest price on the approved specialty medication is selected.
The chosen specialty pharmacy can then deliver the medicine to employees on time. Also, the newly launched solution sincerely monitors the fulfillment of each specialty claim devoid of any interruption to the existing patient experience and also leads to a decline in the need to waive any prescribed medicine.
The ulterior motive behind the latest move remains to increase access to enhanced pharmaceutical care and infuse greater affordability within expensive prescription medications. This, in turn, is expected to provide a greater peace of mind to employers and their employees.
Cost savings will differ according to employer and prescribed medication but availing Mercer SelectRx can drive savings of up to 10% on specialty drug spending. In addition to this, the new solution also widens employees’ access to the network of quality specialty pharmacies.
The recent product launch seems to be a time opportune one, as substantiated by Mercer’s 2023 National Survey of Employer-Sponsored Health Plans. For quite a few years, prescription medication costs remain the fastest-growing component in employee health benefit expenses and specialty drugs alone have risen by more than 10% in 2023. As 50 new specialty drugs are anticipated to make their entry into the market every year, the need to control drug costs and manage specialty pharmacy spending appears to be the need of the hour.
As the goal of Mercer remains to provide advice, solutions and products that cater to the health, wealth and career needs of an evolving workforce, rolling out solutions like Mercer SelectRx is expected to drive revenues of the sub-unit. Mercer’s revenues rose 5% year over year in 2023 and also made up for around 24% of Marsh & McLennan’s consolidated revenues last year.
Such initiatives bear testament to the active growth strategy followed by MMC within its different operating units. These efforts have enabled Marsh & McLennan to delve into new geographies, expand within the existing locations, foray into new businesses and specialize within its current businesses.
Shares of Marsh & McLennan have gained 24.9% in the past year compared with the industry’s 21.3% growth. MMC currently carries a Zacks Rank #3 (Hold).
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks in the insurance space are CNO Financial Group, Inc. (CNO - Free Report) , Brown & Brown, Inc. (BRO - Free Report) and Erie Indemnity Company (ERIE - Free Report) . While CNO Financial sports a Zacks Rank #1 (Strong Buy) at present, Brown & Brown and Erie Indemnity carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
CNO Financial’s earnings surpassed estimates in two of the trailing four quarters and missed the mark twice, the average surprise being 3.62%. The Zacks Consensus Estimate for CNO’s 2024 earnings suggests year-over-year growth of 2.6%. The consensus mark for CNO’s 2024 earnings has moved 4.3% north in the past 30 days.
Brown & Brown’s bottom line outpaced earnings estimates in each of the last four quarters, the average surprise being 11.19%. The Zacks Consensus Estimate for BRO’s 2024 earnings and revenues suggests growth of 13.9% and 6.7%, respectively, from the prior-year’s reported figures. The consensus mark for BRO’s 2024 earnings indicates a 5.6% improvement in the past 60 days.
Erie Indemnity’s earnings surpassed estimates in three of the trailing four quarters and missed the mark once, the average surprise being 11.24%. The Zacks Consensus Estimate for ERIE’s 2024 earnings and revenues suggests year-over-year growth of 18.3% and 11.4%, respectively. The consensus mark for ERIE’s 2024 earnings has moved 2.4% north in the past seven days.
Shares of CNO Financial, Brown & Brown and Erie Indemnity have gained 4.2%, 48.9% and 76.7%, respectively, in the past year.
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Marsh & McLennan's (MMC) Mercer SelectRx to Lower Pharmacy Spend
Marsh & McLennan Companies, Inc.’s (MMC - Free Report) sub-unit from the Consulting segment, Mercer, recently introduced Mercer SelectRx in a bid to generate higher savings on specialty drug expenses for employers and their employees.
The new product leverages the proprietary and cloud-based technology platform of Free Market Health and is also built with the power to offer transparency on specialty pharmacy pricing. Specialty prescriptions are directed to the platform consequent to which a comparison is made among an organized network of specialty pharmacies and the one quoting the lowest price on the approved specialty medication is selected.
The chosen specialty pharmacy can then deliver the medicine to employees on time. Also, the newly launched solution sincerely monitors the fulfillment of each specialty claim devoid of any interruption to the existing patient experience and also leads to a decline in the need to waive any prescribed medicine.
The ulterior motive behind the latest move remains to increase access to enhanced pharmaceutical care and infuse greater affordability within expensive prescription medications. This, in turn, is expected to provide a greater peace of mind to employers and their employees.
Cost savings will differ according to employer and prescribed medication but availing Mercer SelectRx can drive savings of up to 10% on specialty drug spending. In addition to this, the new solution also widens employees’ access to the network of quality specialty pharmacies.
The recent product launch seems to be a time opportune one, as substantiated by Mercer’s 2023 National Survey of Employer-Sponsored Health Plans. For quite a few years, prescription medication costs remain the fastest-growing component in employee health benefit expenses and specialty drugs alone have risen by more than 10% in 2023. As 50 new specialty drugs are anticipated to make their entry into the market every year, the need to control drug costs and manage specialty pharmacy spending appears to be the need of the hour.
As the goal of Mercer remains to provide advice, solutions and products that cater to the health, wealth and career needs of an evolving workforce, rolling out solutions like Mercer SelectRx is expected to drive revenues of the sub-unit. Mercer’s revenues rose 5% year over year in 2023 and also made up for around 24% of Marsh & McLennan’s consolidated revenues last year.
Such initiatives bear testament to the active growth strategy followed by MMC within its different operating units. These efforts have enabled Marsh & McLennan to delve into new geographies, expand within the existing locations, foray into new businesses and specialize within its current businesses.
Shares of Marsh & McLennan have gained 24.9% in the past year compared with the industry’s 21.3% growth. MMC currently carries a Zacks Rank #3 (Hold).
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks in the insurance space are CNO Financial Group, Inc. (CNO - Free Report) , Brown & Brown, Inc. (BRO - Free Report) and Erie Indemnity Company (ERIE - Free Report) . While CNO Financial sports a Zacks Rank #1 (Strong Buy) at present, Brown & Brown and Erie Indemnity carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
CNO Financial’s earnings surpassed estimates in two of the trailing four quarters and missed the mark twice, the average surprise being 3.62%. The Zacks Consensus Estimate for CNO’s 2024 earnings suggests year-over-year growth of 2.6%. The consensus mark for CNO’s 2024 earnings has moved 4.3% north in the past 30 days.
Brown & Brown’s bottom line outpaced earnings estimates in each of the last four quarters, the average surprise being 11.19%. The Zacks Consensus Estimate for BRO’s 2024 earnings and revenues suggests growth of 13.9% and 6.7%, respectively, from the prior-year’s reported figures. The consensus mark for BRO’s 2024 earnings indicates a 5.6% improvement in the past 60 days.
Erie Indemnity’s earnings surpassed estimates in three of the trailing four quarters and missed the mark once, the average surprise being 11.24%. The Zacks Consensus Estimate for ERIE’s 2024 earnings and revenues suggests year-over-year growth of 18.3% and 11.4%, respectively. The consensus mark for ERIE’s 2024 earnings has moved 2.4% north in the past seven days.
Shares of CNO Financial, Brown & Brown and Erie Indemnity have gained 4.2%, 48.9% and 76.7%, respectively, in the past year.