Executives at Marsh & McLennan Companies (NYSE:MMC) told Wall Street securities analysts today that the company’s private health insurance exchange program is nice, but not currently a big moneymaker.
Daniel Glaser, Marsh’s president, talked about the Mercer unit’s Mercer Marketplace exchange program during a conference call the company held to brief the analysts on the company’s third-quarter earnings.
The Mercer exchange program now serves about 700,000 active employees and retirees, and it provides exchange access for a total of about 1.5 million lives, Glaser said.
The number of covered lives is about 43 percent higher than it was a year ago, he said.
“We are pleased with the continuing growth of Mercer Marketplace, although we would highlight that we do not expect it to contribute to earnings in 2016,” he said.
Later during the call, Glaser said that, for Marsh & McLennan, the primary exchange program goal “is to creating a platform and a framework for us to handle a lot of lives and to grow on a rapid but pretty consistent basis for many years to come.”
But the exchange is “really a startup organization in some ways,” Glaser said.