Nation's Leader in Outsourcing Administration Sees Natural Extension from its Retiree Exchange
LINCOLNSHIRE, Ill., April 27, 2011 /PRNewswire via COMTEX/ --
Aon Hewitt, the global human resource consulting and outsourcing business of Aon Corporation (NYSE: AON), today announced plans to offer a corporate health care exchange to employers nationwide, targeting 1,000 or more full-time employees, beginning as early as 2012. Aon Hewitt has been providing and administering retiree medical exchanges for several years. In anticipation of changes to the insurance market, the organization is extending its exchange model to offer employers a viable option for active employees.
"Health reform creates an opportunity for employers to re-examine the way in which they provide health benefits to employees," said Ken Sperling, global Health & Benefits Practice leader with Aon Hewitt. "Leveraging the efficiencies and market competition in an exchange environment has the potential to provide immediate and long-term savings to employers, while giving employees more choice and control over their benefit plans. The corporate health care exchange concept was an obvious choice for Aon Hewitt, given our experience and expertise in benefits administration. The Aon Hewitt exchange model already exists; it is an extension of our very successful retiree medical exchange, which administers retiree benefits to more than 2.4 million participants. We are the largest benefits administrator in the U.S., providing outsourcing administration services to more than 10 million employees and their dependents. We know what works."
Aon Hewitt currently is conducting health care conferences for their clients in many cities nationwide. At the Chicago and New York events, 243 participants were asked about their plans to provide health care coverage to their employees in 2015 and beyond. There was a nearly even split between employers who thought they would ultimately be delivering health benefits via a corporate exchange (43 percent) versus continuing to offer health care benefits directly with greater financial controls and policies (47 percent). Meanwhile, 9 percent said they would continue their attempts to manage the health care trend annually, based on current business and economic conditions, and just 1 percent said they do not believe they would be offering health care coverage at all in 2015.
"Client concerns about providing health care coverage center on the balance between removing risk and volatility, and offering coverage as a key attraction and retention tool," said John Zern, Americas Health & Benefits Practice leader with Aon Hewitt. "The Aon Hewitt corporate exchange model addresses both these issues. Volatility is mitigated through a defined employer contribution for employees to purchase coverage through the exchange, and this important benefit is delivered through a partner with a proven track record for success as the nation's leading health care consultant and employee benefits outsourcer."
About Aon Hewitt
Aon Hewitt is the global leader in human resource consulting and outsourcing solutions. The company partners with organizations to solve their most complex benefits, talent and related financial challenges, and improve business performance. Aon Hewitt designs, implements, communicates and administers a wide range of human capital, retirement, investment management, health care, compensation and talent management strategies. With more than 29,000 professionals in 90 countries, Aon Hewitt makes the world a better place to work for clients and their employees. For more information on Aon Hewitt, please visit www.aonhewitt.com.
Aon Corporation (NYSE: AON) is the leading global provider of risk management services, insurance and reinsurance brokerage, and human capital solutions and outsourcing. Through its more than 59,000 colleagues worldwide, Aon unites to deliver distinctive client value via innovative and effective risk management and workforce productivity solutions. Aon's industry-leading global resources and technical expertise are delivered locally in over 120 countries. Named the world's best broker by Euromoney magazine's 2008, 2009 and 2010 Insurance Survey, Aon also ranked highest on Business Insurance's listing of the world's insurance brokers based on commercial retail, wholesale, reinsurance and personal lines brokerage revenues in 2008 and 2009. A.M. Best deemed Aon the number one insurance broker based on revenues in 2007, 2008 and 2009, and Aon was voted best insurance intermediary 2007-2010, best reinsurance intermediary 2006-2010, best captives manager 2009-2010, and best employee benefits consulting firm 2007-2009 by the readers of Business Insurance. Visit http://www.aon.com for more information on Aon and http://www.aon.com/unitedin2010 to learn about Aon's global partnership and shirt sponsorship with Manchester United.
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SOURCE Aon Corporation