United States Health Insurance Market: Opportunities and Challenges in the Face of COVID-19 and Growing Chronic Diseases

US Health Insurance Market
The healthcare system in the United States is an advanced bureaucracy. Private non-profit organisations own a major portion of hospitals and clinics in the United States. Nonetheless, the United States has the greatest healthcare spending in the world. While public payers such as Federal institutions or State and local governments cover a substantial portion of these costs, they can also be paid by private insurance and individual contributions.

Furthermore, the government offers programmes that tend to cover healthcare expenditures for the most vulnerable members of society, such as the aged, disabled and the poor.

The health insurance industry in the United States has experienced phenomenal growth as a result of rising employer-sponsored insurance demand and rising average premium costs. Additionally, increased internet use and digitization have a favourable impact on the whole US health insurance market.

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◙ Impact of Covid-19 over Health Insurance Market
Health spending increased in 2020 at the highest rate of growth since 2002 as a result of the COVID-19 epidemic. NHE growth was only 1.9%, a slower rate of growth than the 4.3% increase in 2019, when spending for federal public health and other federal programs (which includes COVID-19 supplemental funding) is taken into account. This slower rate of growth is largely attributable to the reduced use of medical care goods and services as a result of the pandemic. The Gross Domestic Product (GDP) contribution to health climbed significantly from 17.6% in 2019 to 19.7% in 2020, the greatest rise in history.

◙ Increasing Number of Chronic Disorder Cases
It is expected that the number of people who purchase health insurance would rise as a result of the rising cases of chronic diseases like diabetes, cancer, cardiovascular disease, and neurological diseases in the nation. According to the International Diabetes Federation, the number of cases of diabetes in the United States was about 32.2 million in 2021 and by 2030, 34.7 million of these cases are expected to exist. In the US, treating chronic illnesses like cancer and heart disease is relatively expensive. As a result, many people choose to buy health insurance to avoid the sudden burden of having to pay a substantial quantity of money for hospitals and other medical expenditures.

◙ Key Developments
► On 31st January 2023, Medicare Advantage providers will repay USD 4.7 billion to the Centers for Medicare & Medicaid Services (CMS) in the coming 10 years. CMS will be able to retrieve overpayments made for medical treatment to Medicare Advantage insurers that are not supported by the beneficiary's medical record as per a new regulation made in the Medicare Advantage Risk Adjustment Data Validation program.
► The number of people lacking insurance in the US reduces and reaches its all-time low on 20th January 2023 according to a report released by the U.S. Department of Health and Humans Services. The rate falls to 10.5% in 2021 from 11.1% in 2020.

◙ Further Key Findings
► Ageing Population
The share of the U.S. population aged 65 and over has increased significantly over the past several years, rising from 13% in 2010 to 16% in 2021. Furthermore, that number is projected to continue climbing - reaching 20% by 2030. Since people age 65 and over, on average, spend more on healthcare than any other age group, growth in the number of older Americans is expected to increase total healthcare costs over time.
► Rising Cost of Healthcare
A variety of variables can raise healthcare expenses, including, rising health-care pricing, and a growing, ageing, or sicker population; however, putting more money into the issue will not necessarily improve coverage, particularly in the case of Medicare. According to the Medicare Trustees report, which was issued on August 31 of this year, the Medicare Trust Fund, which pays hospital services through Medicare Part A, will be depleted in 2026.
► Unhealthy lifestyle of people
Despite the remarkable improvements in U.S. mortality levels and longevity during the 20th century, America's unhealthy lifestyles are undermining the nation's well-being and imperilling its future. Increasing obesity, physical inactivity, increased tobacco and sugar consumption, smoking prevalence, alcohol misuse, drug overdoses, and unhealthy food habits are the major reasons behind the increasing burden of chronic diseases in America. This gives an opportunity to the insurance business.
► Rise of Telemedicine services
Telemedicine services have seen significant growth in recent years and are expected to continue to do so. This presents an opportunity for health insurance providers to offer telemedicine services as part of their health plans, giving individuals access to medical care from the comfort of their homes. In the United States, 76% of hospitals connect with patients using some form of telemedicine.
► Affordability challenges faced by end payers
End payers, who are already struggling to finance healthcare, have little capacity to tolerate any increase in expenses. Employers have continued to transfer healthcare costs to employees. In 2013, around 18% of employees were enrolled in high-deductible health insurance. By 2021, 40% of employees were enrolled in these health plans. Furthermore, in 2019, the average family contribution to coverage was 32% for employees at organizations with more than 500 employees and 53% for those with fewer than 499 employees.

Makreo research has published a study on Insurance Market specific to Health Insurance titled, "The United States Health Insurance Market". The study evaluates the Health assessment profile with a detailed assessment of different sectors of the United States. The market has witnessed many shifts in the recent past that have impacted the profit margins of the players but also accounted for a rise in demand for private health insurance thus this report highlights the private and public health insurance market. The report is the right blend of qualitative and quantitative factors with market dynamics and sector assessment.

◙ The report examines the US Health Insurance Market on the below parameters:
► Period of Study-
2018-2022: Past and Present Scenario
2023-2028 : Future Outlook of the industry

► Health Assessment Profile-
Life Expectancy Rate, Chronic Disease, Mortality Rate, Opioid Epidemic, Mental Health Issue, Health Insurance Coverage

► Market Assessment-
The report examines the detailed description of overall health insurance industry performance in terms of past and present performance. Report assess market revenue of private health insurance sector including employer based and individual. Health insurance coverage by age, uninsured population, government support and competitive landscape has also been covered.

► Companies Covered-
United Health, Elevance Health, Centene Corp, CVS Health Corporation, Humana Inc, The Cigna Group, Molina Healthcare, and Health Care Service Corporation.

For more information on the research report, refer to the below link:
https://www.makreo.com/report/united-states-health-insurance-market-revenue-forecast-2018-2028-analysis-private-public-insurance

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This release was published on openPR.