NEW YORK - Mercer (NASDAQ:MERC), part of Marsh McLennan (NYSE: NYSE:MMC), has introduced Mercer SelectRx, a new platform aimed at reducing costs for employers and employees on specialty medications. This initiative harnesses Free Market Health's cloud-based technology to foster competition among specialty pharmacies.
Specialty drugs, a significant driver of rising employee health benefit costs, saw a more than 10% increase in 2023. With around 50 new specialty drugs expected to hit the market each year, including expensive gene therapies, managing these costs remains a critical challenge for employers.
Mercer SelectRx's approach redirects specialty prescriptions to its platform, which incites competition among a select network of pharmacies capable of providing the necessary services. The pharmacy that offers the lowest price for an approved medication is then chosen to dispense it. This competitive model aims to achieve up to 10% savings on specialty drug expenses without delaying medication delivery or affecting drug rebates from pharmaceutical manufacturers.
Ed Lehman, US Health and Benefits Leader at Mercer, anticipates that this solution will not only yield savings but also enhance the employee experience, positioning it as a dual benefit for clients focused on maintaining affordable healthcare while supporting their workforce's well-being.
The platform also ensures access to a wide array of quality specialty pharmacies, offering unique care models and disease-specific expertise. It operates without disrupting the employer's existing Pharmacy Benefit Manager (PBM) relationships and maintains the standard patient experience, including tracking specialty claims to fulfillment and reducing medication abandonment.
Alysha Fluno, National Pharmacy Practice Leader at Mercer, highlighted the platform's role in expanding healthcare access and affordability for those burdened by high-cost prescriptions.
Mercer, with around 25,000 employees in 43 countries, and Free Market Health, established in 2019, are collaborating to address the complexities of specialty medication fulfillment and costs.
The information in this article is based on a press release.
InvestingPro Insights
In light of Mercer's recent launch of Mercer SelectRx, financial metrics provided by InvestingPro can offer additional context to the company's performance and stability. Marsh McLennan (NYSE: MMC) stands out with a robust market capitalization of $98.91 billion, which reflects its significant presence in the insurance industry—a sector where it has been a prominent player, as noted in one of the InvestingPro Tips. The company's dedication to shareholder returns is evident through its impressive track record of raising dividends for 14 consecutive years, and it has maintained dividend payments for an astounding 54 years. This commitment to dividends is particularly noteworthy for investors seeking reliable income streams.
InvestingPro Data also reveals that Marsh McLennan has a Price/Earnings (P/E) ratio of 27.08, with an adjusted P/E ratio for the last twelve months as of Q4 2023 at 26.31. This suggests a premium valuation compared to the broader market, which may be justified by the company's consistent profitability and long-term performance. The Price/Book ratio for the same period stands at 8.18, indicating that investors are willing to pay a higher price for each dollar of book value, possibly due to the company's strong brand and market position. Additionally, the company has witnessed a revenue growth of 9.73% over the last twelve months as of Q4 2023, which is a positive sign for potential growth prospects.
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