Elevance Health vs. Marsh & McLennan Companies Detailed Comparison

When comparing two leading U.S. insurance giants, Elevance Health (formerly Anthem, Inc.) and Marsh & McLennan Companies (MMC), it's essential to examine their strengths across key areas. This comparison will explore both companies’ backgrounds, insurance products, pricing, claims process, customer service, market reputation, financial stability, regulatory compliance, and target audiences.

1. Company Background

Elevance Health
Founded in 1946, Elevance Health, previously known as Anthem, Inc., is headquartered in Indianapolis, Indiana. It rebranded in 2022 to reflect a broader focus on healthcare services and solutions, rather than purely health insurance. Elevance Health operates primarily in the health insurance sector, providing services through its affiliated companies, including Blue Cross Blue Shield plans, in numerous states across the U.S.

Marsh & McLennan Companies (MMC)
Marsh & McLennan Companies, established in 1905, is headquartered in New York City. It operates in four major business sectors: risk and insurance services, consulting, reinsurance, and risk management. Its subsidiaries include Marsh (insurance brokerage and risk management), Guy Carpenter (reinsurance), Mercer (consulting), and Oliver Wyman (management consulting). MMC’s services cover a wide range of industries, not just limited to insurance but also including employee benefits, investment consulting, and risk mitigation.

Key Difference: Elevance Health focuses largely on health insurance, while MMC has a broader portfolio, including brokerage, reinsurance, and consulting services. Elevance Health’s primary clientele is healthcare-focused, whereas MMC serves a wider range of industries.

2. Insurance Products

Elevance Health

• Health Insurance: Elevance Health offers individual and group health insurance plans, including HMOs, PPOs, and EPOs.
• Medicare and Medicaid: As a major provider of public health plans, it offers extensive coverage through Medicare Advantage and Medicaid plans.
• Dental and Vision: The company also provides dental and vision insurance.
• Pharmacy Benefits: Elevance manages prescription drug plans and pharmacy benefits for policyholders.

Marsh & McLennan Companies

• Commercial Insurance: Through Marsh, MMC offers commercial property and casualty insurance, including liability, workers' compensation, and cybersecurity insurance.
• Employee Benefits: Mercer, a subsidiary, offers health, retirement, and benefits programs for businesses.
• Reinsurance: Guy Carpenter focuses on reinsurance solutions, helping insurance companies manage risk.

Key Difference: Elevance Health specializes in health-related insurance products, while MMC’s offerings include a wider array of commercial and risk management insurance services, with a global reach across sectors.

3. Pricing

Elevance Health
Premiums for Elevance Health vary based on factors like location, age, health status, and plan type. Pricing is competitive, especially in the individual and group markets, and can be more affordable due to its large network of Blue Cross Blue Shield plans.

Marsh & McLennan Companies
As a brokerage and consulting firm, MMC’s pricing depends on the type of insurance product, industry risk level, and client-specific factors. Since it operates as a broker, MMC does not set the premiums but instead helps clients find the most cost-effective insurance solutions from various providers.

Key Difference: Elevance Health’s pricing is directly influenced by insurance factors like health conditions and plan types, while MMC’s pricing is more aligned with advisory services and industry-specific risks.

4. Claims Process

Elevance Health
Policyholders can file claims through an online portal, mobile app, or by contacting customer service. The approval process for claims varies based on the type of plan and medical necessity, but generally, routine claims are processed within a few weeks. Elevance also offers tools for members to track claim status and appeals.

Marsh & McLennan Companies
As a broker, MMC aids clients in navigating the claims process with third-party insurers. Marsh assists businesses by streamlining the claim process, offering expertise in complex claims, and negotiating with insurers on behalf of their clients. The actual approval time depends on the insurer involved in each case.

Key Difference: Elevance directly handles health insurance claims, offering digital and phone-based solutions, while MMC acts as an intermediary, helping businesses manage claims with other insurers.

5. Customer Service

Elevance Health
Customer service is provided through multiple channels, including phone support, live chat, email, and self-service via its mobile app. Availability is typically during business hours, with some after-hours support for emergencies. However, customer service reviews have been mixed, with occasional complaints about long wait times.

Marsh & McLennan Companies
MMC’s customer service is more relationship-driven, providing dedicated account managers and a more hands-on approach to business clients. Their responsiveness is praised, especially for complex insurance and risk management solutions.

Key Difference: Elevance Health serves individuals and businesses with standardized support, while MMC focuses on high-touch, personalized service for corporate clients, particularly in the commercial space.

6. Market Reputation

Elevance Health
Elevance Health has earned a strong market position, especially within the healthcare sector. It is consistently ranked as one of the largest health insurers in the U.S., with a robust portfolio of Medicare and Medicaid products. However, customer complaints have emerged over billing issues and claim denials.

Marsh & McLennan Companies
MMC holds a well-respected position as one of the top global risk management firms. It has won numerous industry awards for its insurance solutions and consulting services. Despite this, MMC’s role as a broker sometimes subjects it to criticism, especially regarding transparency in pricing and commission structures.

Key Difference: Elevance Health has a healthcare-centric reputation, while MMC’s market standing is defined by its global expertise in risk management and insurance brokerage.

7. Financial Stability

Elevance Health
As of 2023, Elevance Health reported strong financial performance, with revenues exceeding $160 billion. It holds solid financial ratings, with an A (Excellent) rating from AM Best, reflecting its ability to meet ongoing insurance obligations.

Marsh & McLennan Companies
MMC also enjoys a stable financial outlook, with revenues topping $23 billion in 2023. It holds high financial ratings, including an A (Excellent) from AM Best, signaling its sound financial foundation and global reach.

Key Difference: Both companies have robust financial ratings, though Elevance Health has a significantly larger revenue base, primarily due to its dominant position in health insurance.

8. Regulatory Compliance

Elevance Health
As a health insurer, Elevance Health operates under strict regulatory oversight, particularly with its Medicare and Medicaid products. While it has faced legal challenges, including lawsuits over claim denials and deceptive marketing practices, the company remains compliant with most regulations and works to address these issues.

Marsh & McLennan Companies
MMC operates in a heavily regulated environment, especially within its insurance brokerage and consulting roles. The company has faced scrutiny over antitrust violations in the past, which led to legal settlements. However, it maintains a strong compliance structure to meet regulatory standards globally.

Key Difference: Both companies have faced legal challenges but continue to comply with regulatory frameworks. Elevance Health’s issues are more related to healthcare and insurance, while MMC's challenges stem from its broker-related services.

9. Target Audience

Elevance Health
Elevance Health serves individuals, small businesses, large corporations, and government programs (Medicare/Medicaid). Its target audience includes individuals looking for health coverage, seniors requiring Medicare, and low-income families needing Medicaid services.

Marsh & McLennan Companies
MMC primarily targets businesses, corporations, and governments. Its services are ideal for organizations looking for customized risk management, employee benefits, and insurance brokerage solutions.

Key Difference: Elevance Health focuses on health insurance for individuals and families, while MMC caters to corporate and institutional clients, offering more complex insurance and risk management services.

10. Recommendation

Both Elevance Health and Marsh & McLennan Companies stand out in their respective fields. Elevance Health excels in the health insurance market, offering a comprehensive suite of healthcare-related products, making it an excellent choice for individuals, small businesses, and government program participants. On the other hand, MMC shines in the commercial space, particularly for businesses needing risk management, employee benefits, or reinsurance solutions.

Key Strengths:

• Elevance Health: Best for individuals and companies seeking health insurance, Medicare, Medicaid, and associated healthcare services.
• Marsh & McLennan Companies: Ideal for corporations needing risk management, business insurance, and consulting services across industries.

The choice between these two companies depends on the customer’s needs. For healthcare coverage, Elevance Health is the go-to provider, while for comprehensive risk management and commercial insurance, MMC is the superior option.

FAQs

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

Elevance Health, formerly Anthem, Inc., focuses mainly on health insurance, offering individual and group health plans, Medicare, Medicaid, and other related services. Marsh & McLennan Companies (MMC) is a global professional services firm that provides risk management, insurance brokerage, reinsurance, and consulting services. While Elevance Health caters primarily to healthcare-related insurance needs, MMC serves businesses and industries with a wider range of commercial insurance and risk management solutions.

2. What types of insurance products does Elevance Health offer?

Elevance Health offers a variety of health insurance products, including individual and group health plans such as HMOs, PPOs, and EPOs. They also provide Medicare Advantage, Medicaid, dental and vision insurance, as well as pharmacy benefit management. Their focus is on providing comprehensive healthcare services across the U.S., especially under the Blue Cross Blue Shield umbrella.

3. What insurance services does Marsh & McLennan Companies provide?

Marsh & McLennan Companies offer commercial insurance products through their subsidiaries, including Marsh (insurance brokerage), Mercer (employee benefits and consulting), and Guy Carpenter (reinsurance). They cover areas like property and casualty insurance, liability, workers' compensation, cybersecurity, and employee benefits programs. Additionally, MMC offers risk management consulting and helps businesses mitigate their risk exposure globally.

4. How does Elevance Health price its health insurance premiums?

Elevance Health’s premiums are determined by various factors such as the individual’s age, health status, location, and the specific plan chosen (HMO, PPO, EPO, etc.). Group plans for businesses vary based on the size of the workforce and employer contributions. Medicare and Medicaid pricing is often influenced by government regulations, subsidies, and the applicant's income level.

5. What factors affect the pricing of Marsh & McLennan’s insurance solutions?

Marsh & McLennan, as an insurance broker, does not set insurance premiums but helps clients find cost-effective insurance solutions from different providers. Pricing depends on the type of insurance, industry risk levels, coverage requirements, and the client’s specific risk profile. MMC also offers risk management consulting to help businesses minimize their insurance costs through better risk assessment.

6. How does the claims process work with Elevance Health?

Elevance Health allows policyholders to file claims through several methods, including an online portal, mobile app, or customer service. Routine health claims are typically processed within a few weeks, while more complex claims may take longer. Elevance Health also provides tools for tracking claim status and managing appeals, ensuring transparency in the process.

7. What role does Marsh & McLennan play in the claims process?

As an insurance broker, Marsh & McLennan does not directly handle claims but helps businesses navigate the claims process with their chosen insurance provider. MMC’s team of specialists aids clients with complex claims, negotiating with insurers on their behalf to ensure a fair settlement. They also streamline claims filing, especially in risk-heavy industries, offering expertise in managing large or unusual claims.

8. What customer service channels does Elevance Health offer?

Elevance Health provides multiple customer service channels, including phone support, live chat, email, and self-service through its mobile app and online portal. The support is available during business hours, with after-hours assistance for emergencies. However, there have been mixed reviews about long wait times and delayed responses in certain cases.

9. What is the customer service experience like with Marsh & McLennan Companies?

MMC emphasizes personalized service for its corporate clients, often assigning dedicated account managers to handle client inquiries. Their customer service is known for being relationship-driven, ensuring that businesses receive tailored insurance solutions and support. MMC is praised for its hands-on approach, particularly for complex risk management and consulting services.

10. How do Elevance Health and Marsh & McLennan compare in terms of financial stability?

Both Elevance Health and Marsh & McLennan are financially stable companies with strong ratings from AM Best (both hold an A rating, which signifies excellence). Elevance Health, with revenues exceeding $160 billion in 2023, dominates the health insurance market, while MMC, with revenues around $23 billion, leads in risk management and insurance brokerage services.

11. What types of businesses or individuals benefit most from Elevance Health’s services?

Elevance Health is ideal for individuals seeking health insurance, small businesses needing group health plans, and government programs such as Medicare and Medicaid participants. Their services are well-suited for people looking for comprehensive health coverage, including dental and vision plans, and those interested in Blue Cross Blue Shield products.

12. Who are Marsh & McLennan Companies’ primary customers?

MMC serves businesses, corporations, governments, and other large organizations. Its services are tailored for industries requiring complex risk management, commercial insurance solutions, employee benefits programs, and reinsurance. MMC’s clientele includes organizations in need of custom insurance solutions to mitigate risk exposure and enhance operational resilience.

13. What are the key regulatory challenges faced by Elevance Health?

Elevance Health operates under strict regulatory oversight, especially with its Medicare and Medicaid products. The company has faced lawsuits over claim denials, marketing practices, and billing errors. While these issues have impacted its reputation at times, Elevance remains committed to complying with healthcare industry regulations and working towards improving its consumer protection measures.

14. What are the regulatory compliance issues that Marsh & McLennan Companies face?

MMC operates in a heavily regulated industry, especially in insurance brokerage and risk management. In the past, the company faced legal challenges related to antitrust issues and has settled cases concerning transparency in pricing and commissions. Despite these challenges, MMC continues to maintain strong compliance practices and works to align its operations with global regulatory frameworks.

15. How does Elevance Health manage its market reputation?

Elevance Health has a solid reputation in the health insurance market, largely due to its affiliation with Blue Cross Blue Shield plans and its broad reach in Medicare and Medicaid services. However, like many large insurers, it faces occasional customer complaints about denied claims, billing issues, and long customer service wait times. Elevance works to address these concerns to maintain its market standing.

16. What industry perception does Marsh & McLennan Companies hold?

Marsh & McLennan is viewed as a leader in the insurance brokerage and risk management sectors. The company is highly respected for its expertise in handling complex commercial insurance needs, offering consulting services, and mitigating risk exposure for businesses. MMC is consistently recognized through industry awards, though some criticism exists regarding the opacity of brokerage fees and commissions.

17. How does Elevance Health compare in terms of claims approval times?

Elevance Health typically processes standard health insurance claims within a few weeks. The approval times vary based on the type of claim, medical necessity, and whether the plan involves Medicare, Medicaid, or private insurance. Elevance strives to streamline the process through digital tools, but complex claims may require additional review, leading to extended approval times.

18. How long does it take for claims to be processed with Marsh & McLennan’s insurance services?

Since MMC operates as an insurance broker, claim processing times depend on the insurer managing the claim. MMC’s role is to facilitate the claim process, offering businesses guidance and advocating on their behalf to ensure timely approvals. Businesses dealing with large or complex claims benefit from MMC’s expertise in expediting and resolving disputes.

19. What are the biggest strengths of Elevance Health?

Elevance Health’s major strength is its expansive network of health insurance products, particularly its Medicare and Medicaid services. Its affiliation with Blue Cross Blue Shield allows it to offer robust health insurance coverage across a wide geographical area, making it a leading provider in the U.S. healthcare market. Additionally, its pharmacy and dental insurance options add value to its comprehensive healthcare solutions.

20. What are the key strengths of Marsh & McLennan Companies?

Marsh & McLennan Companies’ strengths lie in its ability to provide complex insurance solutions, risk management services, and consulting across multiple industries. With expertise in reinsurance through Guy Carpenter, employee benefits through Mercer, and global insurance brokerage through Marsh, MMC is well-positioned to serve corporate clients with custom-tailored insurance solutions that address specific risk factors and operational needs.