Administration August 4, 2016

DB Plans See a Bump in Funded Status in July

Mercer reports the funded status of S&P 1500 DB plans increased 1% in July, while Wilshire says the funded status for S&P 500 plans gained 0.8%.
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Reports about defined benefit (DB) plans’ funded status suggest a slight bump in July.

The estimated aggregate funding level of pension plans sponsored by S&P 1500 companies increased by one percentage point during July, reaching 77%, as positive equity markets more than offset a further decrease in discount rates, according to Mercer.

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Mercer says the S&P 500 index gained 3.6% and the MSCI EAFE index gained 5.0% in July. Typical discount rates for pension plans as measured by the Mercer Yield Curve decreased by 12 basis points to a low of 3.35%.

The aggregate funded ratio for U.S. S&P 500 corporate pension plans increased by 0.8 percentage points to end the month of July at 76.3%, narrowing its year-to-date decline to 5.1 percentage points, according to Wilshire Consulting. The monthly change in funding resulted from a strong 2.9% rise in asset values that was partially offset by a 1.9% increase in liability values. The year-to-date decrease in funding is the result of a nearly 14% increase in liability values.

Mercer reports that as of July 31, the estimated aggregate deficit of $562 billion for S&P 1500 plans represents a decrease of $6 billion as compared to the end of June. However, this aggregate deficit remains down by $158 billion from the $404 billion deficit measured at the end of 2015.

Products August 4, 2016

Mercer Offers Health Benefits Decision Support

Mercer Complete Care helps employees understand their health benefits and make optimal provider choices, among other things.
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Mercer and Accolade, a health care concierge for employers, health plans and health systems, launched Mercer Complete Care.

According to the Accolade Consumer Healthcare Experience Index, 80% of consumers would value having a trusted person to support them through the health care system, yet only 56% of large employer programs include even a basic advocacy solution.

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Mercer Complete Care unifies the clinical resources and expertise of both organizations, bringing together Accolade’s technology platform, support infrastructure and Accolade Health Assistants with Mercer’s program design, implementation and clinical oversight. Consumers using Mercer Complete Care simply contact an Accolade Health Assistant via the phone, mobile application or online to address their questions and begin their relationship. The program is employer-sponsored, compatible with most insurance carriers and will contain performance guarantees related to return on investment.

Accolade Health Assistants will serve as a single point of contact to help Mercer Complete Care members navigate the complexities of the health care system and access the providers and services available to them through their benefits. The Health Assistants work closely with a team of nurses, doctors, pharmacists, social workers and behavioral and other specialists who support members as they receive their care from their own providers. Accolade’s open technology platform integrates with other technology and health care point solutions to drive utilization and engagement levels across the entire health care ecosystem.

By offering Mercer Complete Care, employers can help their workforce and dependents:

  • Manage their physical and mental health conditions no matter their level of health risk;
  • Understand their health benefits and make optimal provider choices;
  • Consider their benefits, medical and life factors when making decisions;
  • Navigate annual enrollment and new hire benefit selection;
  • Tackle billing and claims appeals; and
  • Improve utilization of employer-sponsored health programs and services.

“We are very excited to combine health care engagement and clinical management into one comprehensive solution,” says Jim McNary, North America Region business leader for Health & Benefits at Mercer. “We believe Mercer Complete Care is a truly unique advocacy and clinical management model for the complex and fast-moving health care environment that all of our clients, and their employees, find themselves in today.”

Additional information is online here.

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