Comparison of Elevance Health VS. Marsh & McLennan Companies

Elevance Health (formerly Anthem Inc.) and Marsh & McLennan Companies (MMC) are two prominent players in the U.S. insurance sector, although their offerings and business focuses differ significantly. This comparison covers their backgrounds, insurance products, pricing, claims processes, customer service, market reputation, financial stability, regulatory compliance, target audience, and concludes with a recommendation based on key differences.

Company Background

Elevance Health

• Founding: Founded in 2004, Elevance Health is the successor to WellPoint Health Networks and Anthem, Inc. It changed its name in 2022 to reflect its broader focus on health services beyond traditional insurance.
• Headquarters: Indianapolis, Indiana.
• Key Sectors: Elevance Health operates mainly in health insurance, with offerings for individuals, families, and employers, as well as government-sponsored programs like Medicaid and Medicare. It primarily focuses on U.S. markets.

Marsh & McLennan Companies (MMC)

• Founding: MMC was founded in 1905 and has evolved into one of the world's largest insurance brokers and risk management firms.
• Headquarters: New York City, New York.
• Key Sectors: MMC operates in multiple areas, including insurance brokering, risk management, and consulting services. Through subsidiaries like Marsh and Mercer, it provides commercial property and casualty insurance, employee benefits, and wealth management services, with a global presence.

Insurance Products

Elevance Health

• Health Insurance: Elevance Health provides a wide range of health insurance products, including:
  • Individual and Family Plans: Coverage for medical, dental, vision, and pharmacy needs.
  • Medicare Plans: Including Medicare Advantage, Medicare Supplement, and Medicare Part D plans.
  • Medicaid Plans: Government-sponsored programs for low-income individuals.
  • Employer Group Plans: For small, medium, and large businesses.

Marsh & McLennan Companies

• Property & Casualty Insurance: Through Marsh, MMC provides risk management and insurance brokerage services for commercial property and casualty needs. This includes:
  • Commercial Property Insurance: Covers buildings, machinery, and inventories.
  • Liability Insurance: Protects against legal liabilities.
  • Professional and Specialty Insurance: For industries like energy, aviation, and cybersecurity.
• Employee Benefits: Through Mercer, MMC offers group health insurance, retirement plans, and other employee benefits.

Pricing

Elevance Health

• Premiums: Health insurance premiums at Elevance vary based on coverage type, region, age, and whether the policy is for an individual or a group. Factors like deductibles, copays, and out-of-pocket maximums also influence pricing.
• Pricing Factors: Key factors affecting pricing include age, location, health status, and specific coverage levels chosen by customers. Government subsidies may apply for those purchasing individual health plans on the Affordable Care Act (ACA) marketplace.

Marsh & McLennan Companies

• Premiums: MMC's insurance products, particularly in the property and casualty segment, are priced based on the level of risk, business type, and geographic location. Pricing is often highly customized depending on the client’s risk profile and insurance needs.
• Pricing Factors: Industry risks, size of the company, claims history, and the type of coverage (e.g., property, liability, or professional insurance) determine premiums.

Claims Process

Elevance Health

• Filing Methods: Elevance offers multiple methods for filing claims, including online portals, mobile apps, and via customer service representatives.
• Approval Times: Claim approval times vary depending on the type of claim (medical, dental, etc.), but typically range from a few days to several weeks. Emergency claims tend to be processed faster.

Marsh & McLennan Companies

• Filing Methods: MMC, through Marsh, provides claim filing services that can be done online, through brokers, or directly with insurance carriers. As an insurance broker, MMC often acts as an intermediary in the claims process.
• Approval Times: Since MMC doesn’t directly underwrite policies, claim processing times depend on the specific insurance carriers. However, MMC assists clients in expediting the process by working closely with insurers to resolve issues quickly.

Customer Service

Elevance Health

• Support Channels: Elevance Health provides customer support via phone, email, and online chat, as well as through a dedicated mobile app for easy account management.
• Availability: Customer service is available during standard business hours, with 24/7 assistance for certain services like nurse hotlines.
• Responsiveness: Users generally report prompt service, though wait times may increase during peak periods, such as open enrollment.

Marsh & McLennan Companies

• Support Channels: MMC offers support through brokers, online portals, and dedicated account managers. Clients also have access to 24/7 support for certain insurance lines, especially in risk management and emergency services.
• Availability: Given MMC’s global presence, clients can access support around the clock in most regions, with specialized support teams for various sectors.
• Responsiveness: MMC is known for its professional and responsive customer service, particularly for high-stakes corporate clients.

Market Reputation

Elevance Health

• Industry Perception: Elevance Health is recognized as one of the largest health insurers in the U.S. and has received numerous accolades for its health plans, especially in the Medicare and Medicaid sectors.
• Awards: Elevance has been named to several “best places to work” lists and has won awards for innovation in health technology.
• Common Complaints: Customers often cite high premiums and occasional difficulties in navigating claims as common pain points.

Marsh & McLennan Companies

• Industry Perception: MMC is widely respected in the global insurance and risk management industry, known for its expertise in complex risk environments.
• Awards: MMC consistently ranks among the top insurance brokers globally, receiving accolades for innovation and leadership in risk management.
• Common Complaints: As a broker, complaints tend to focus on service responsiveness, especially for smaller clients, and the complexity of the products offered.

Financial Stability

Elevance Health

• Financial Ratings: Elevance has strong financial ratings, typically holding an "A" or higher from rating agencies like A.M. Best, indicating excellent financial stability.
• Performance: As one of the largest health insurers in the U.S., Elevance has consistently strong revenue streams, driven by its extensive customer base and diversification into government-sponsored programs.

Marsh & McLennan Companies

• Financial Ratings: MMC holds high financial ratings, with most agencies rating the company at “A” or above, reflecting its ability to meet obligations and its strong financial health.
• Performance: MMC’s global presence and diversified business model have made it one of the most financially secure companies in the insurance industry. Its revenues are driven by insurance brokerage, risk management, and consulting services.

Regulatory Compliance

Elevance Health

• Legal Issues: Like many large health insurers, Elevance has faced regulatory scrutiny, primarily around claims denials and disputes over coverage. However, it remains in compliance with major federal healthcare laws like the ACA.
• Consumer Protection: Elevance complies with state and federal regulations governing health insurance, including consumer protection laws. It offers dispute resolution services for claims and other issues.

Marsh & McLennan Companies

• Legal Issues: MMC has occasionally faced regulatory challenges, particularly around its role as a broker and potential conflicts of interest. However, it has maintained a strong reputation for compliance with both U.S. and international regulations.
• Consumer Protection: As a broker, MMC adheres to regulations that protect consumers from unfair practices and ensures transparency in its brokerage services.

Target Audience

Elevance Health

• Best Suited Customer Types: Individuals and families seeking health insurance, especially those eligible for Medicaid and Medicare, as well as employers looking for group health coverage. It also serves small to large businesses.

Marsh & McLennan Companies

• Best Suited Customer Types: MMC primarily serves large corporations and high-risk industries looking for tailored risk management solutions. It also caters to smaller businesses through its insurance brokerage services and employee benefit offerings.

Recommendation

Key Differences

• Scope of Offerings: Elevance Health focuses on healthcare coverage for individuals, families, and businesses, while MMC specializes in risk management, commercial insurance, and consulting for corporate clients.
• Claims Process: Elevance handles claims directly as an insurer, while MMC serves as a broker, acting as an intermediary in the claims process.
• Target Audience: Elevance is best suited for individuals and small to medium-sized businesses needing health insurance. MMC caters to large corporations with complex risk management needs.

Strengths

• Elevance Health: Comprehensive health insurance products, particularly for government-sponsored programs like Medicare and Medicaid.
• MMC: Expertise in complex risk management and commercial insurance brokerage, with a global reach.

Overall Recommendation

Both companies are industry leaders, but the best choice depends on the customer’s needs. For individuals and businesses seeking comprehensive health insurance, Elevance Health is the better option. For corporations and industries requiring specialized risk management and commercial insurance, Marsh & McLennan Companies is the recommended choice.

FAQs Elevance Health vs. Marsh & McLennan Companies

1. What are the main differences between Elevance Health and Marsh & McLennan Companies?

• Elevance Health primarily focuses on providing health insurance products for individuals, families, and businesses, including government-sponsored programs like Medicare and Medicaid.
• Marsh & McLennan Companies (MMC) is a global insurance broker and risk management firm offering commercial property, casualty insurance, and consulting services, primarily for large corporations and industries with complex risk management needs.

2. What types of insurance products do Elevance Health and MMC offer?

• Elevance Health: Health insurance, including individual and family plans, Medicare and Medicaid coverage, and group plans for businesses.
• MMC: Commercial property and casualty insurance, employee benefits, liability insurance, professional insurance for industries like aviation and energy, and consulting services through subsidiaries like Marsh and Mercer.

3. How do their pricing models differ?

• Elevance Health: Premiums are based on factors like age, location, health status, and coverage levels for individual and family health plans. Government subsidies may apply for ACA marketplace plans.
• MMC: Pricing is tailored to businesses based on their risk profile, industry, and geographic location. Premiums vary according to the complexity and type of insurance, such as property, liability, or professional insurance.

4. How do Elevance Health and MMC compare in terms of the claims process?

• Elevance Health: Claims are filed through online portals, mobile apps, or customer service, with approval times ranging from a few days to weeks, depending on the claim type.
• MMC: As a broker, MMC helps facilitate claims between clients and insurers. Claims processing times depend on the insurance carriers, but MMC assists clients by streamlining the process.

5. What customer service options are available at Elevance Health and MMC?

• Elevance Health: Offers customer service via phone, email, online chat, and mobile apps. Availability is during business hours, with 24/7 nurse hotlines for health-related support.
• MMC: Provides support through brokers, dedicated account managers, and online portals. Some services are available 24/7, particularly in risk management or emergency situations.

6. What is the market reputation of Elevance Health and MMC?

• Elevance Health: Recognized as one of the largest U.S. health insurers, with strengths in Medicare and Medicaid services. Common complaints include high premiums and claims difficulties.
• MMC: Respected globally in risk management and insurance brokering, MMC is known for its expertise in handling complex corporate insurance needs. Complaints tend to focus on service responsiveness for smaller clients.

7. How financially stable are Elevance Health and MMC?

• Elevance Health: Rated highly by agencies like A.M. Best with an "A" or above, reflecting strong financial health and ability to meet its obligations.
• MMC: Also holds "A" or higher ratings, with a diversified revenue stream from its insurance brokerage, consulting, and risk management services.

8. What are the key regulatory compliance considerations for each company?

• Elevance Health: Complies with federal healthcare laws like the Affordable Care Act (ACA) and offers dispute resolution for claims issues.
• MMC: Adheres to U.S. and international regulations as a broker, ensuring transparency and consumer protection in its brokerage and risk management services.

9. Who are the target audiences for Elevance Health and MMC?

• Elevance Health: Individuals, families, and small to medium-sized businesses seeking health insurance, as well as government-sponsored programs like Medicaid and Medicare.
• MMC: Large corporations and industries with complex risk management needs, seeking specialized insurance and consulting services.

10. Which company is better for health insurance?

• Elevance Health is the better choice for individuals, families, and businesses needing health insurance, especially those eligible for Medicare or Medicaid.

11. Which company is better for corporate risk management and insurance?

• MMC is the ideal choice for large corporations and industries that require customized risk management solutions and commercial insurance coverage.

12. What are the main strengths of Elevance Health?

• Strong focus on health insurance, comprehensive offerings for government programs, and an extensive network of healthcare providers.

13. What are the main strengths of MMC?

• Expertise in handling complex risk management needs for global corporations, diverse insurance products, and consulting services through its subsidiaries.

14. Which company provides faster claims processing?

• Elevance Health may process claims faster for health insurance needs, particularly in emergencies. However, MMC acts as an intermediary between clients and insurers, so claims timing depends on the specific carrier.

15. What are the key differences in customer service between the two companies?

• Elevance Health focuses on customer service through mobile apps and online portals for individuals, while MMC offers personalized account management and 24/7 support for high-risk industries and corporate clients.