Trib Nation asked business reporter Bruce Japsen for some background about Aon’s acquisition of Hewitt Associates. These are two big names in Chicago circles but also nationally. Many companies turn to Hewitt for help with benefit management for employee programs, and the context of the national health care changes make this especially timely.
Aon Corp.'s $4.9 billion plan to buy Lincolnshire-based Hewitt Associates will add human resources consultants to the Chicago based giant insurance brokerage at a time of high unemployment and challenges employers will have dealing with health reform.
Going forward, employers are going to need more help implementing health benefits and new regulations coming under the health care reform law signed into law four months ago by President Obama. The legislation will bring health benefits to about 32 million uninsured.
The Aon-Hewitt deal is a sign companies are coming together to prepare for new business opportunities while helping employers and consumers deal with complex new legislation to gain economies of scale and build their businesses. While this could be good for those in need of health benefits, it could also mean a loss of a job as these large employers shed jobs as part of their mergers. Neither Aon or Hewitt has said yet how many jobs will be lost but they say their will be annual savings of more than $355 million as they reduce middle managers and back office workers in some areas.
Posted at 10:39:25 AM in Business, Health Care
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