U.S. Employee-sponsored Healthcare Market Size Report, 2023-2032
The U.S. employee-sponsored healthcare market size accounted for USD 578.90 billion in 2022 and is estimated to achieve a market size of USD 784.06 billion by 2032 growing at a CAGR of 3.08% from 2023 to 2032.
Key Takeaways:
U.S. Employee-sponsored Healthcare Market Report Scope
| Report Coverage | Details |
| Market Size in 2023 | USD 596.73 Billion |
| Market Size by 2032 | USD 784.06 Billion |
| Growth Rate From 2023 to 2032 | CAGR of 3.08% |
| Base Year | 2022 |
| Forecast Period | 2023 to 2032 |
| Segments Covered | Service, organization size |
| Market Analysis (Terms Used) | Value (US$ Million/Billion) or (Volume/Units) |
| Report Coverage | Revenue forecast, company ranking, competitive landscape, growth factors, and trends |
| Key Companies Profiled | United HealthCare Services, Inc.; Kaiser Foundation Health Plan, Inc.; Anthem Insurance Companies, Inc.; Cigna; Blue Cross Blue Shield Association; Independence Blue Cross; Highmark Inc.; Health Net of California, Inc.; UPMC HEALTH PLAN, INC.; Nationwide Medical Insurance; ComPsych; Wellness Corporate Solutions; Virgin Pulse; EXOS; Marino Wellness; Privia Health; Vitality; Wellsource, Inc.; Central Corporate Wellness; Truworth Wellness; SOL Wellness |
The growth of the market is attributed to the factors such as increasing awareness regarding employees’ health & wellness, and rising healthcare programs in the country are expected to propel the market growth.
A healthcare plan is an employee welfare benefit plan established by an employee or employer of the organization that provides medical care for participants through reimbursement or insurance.Health insurance is one of the major benefits employees need when considering a firm’s compensation offerings. Organizations providing strong wellness and healthcare programs are an important retention and recruitment tool for employers, especially considering the high level of employee attrition in 2021 and 2022. In 2020, 60% of non-elderly Americans, or 163 million employees, were covered by corporate insurance. According to the Kaiser Family Foundation, in 2021, the average annual amounts contributed by employees were USD 1,299 for single coverage and USD 5,969 for family coverage.
As per the report of the U.S. Bureau of Labor Statistics 2022, life insurance was available to 57% of private industry employees, and wellness programs were available to 43% of private industry employees. Corporate health plans offer an affordable way for employees to maintain essential health coverage. Employer-paid health insurance provides a sense of security and increases employee satisfaction. Providing high-quality wellness and healthcare benefits to employees can have both immediate and long-term benefits. Employees who receive quality healthcare plans report a higher appreciation, which leads to higher morale and job satisfaction.
The COVID-19 pandemic positively impacted the market owing to the increasing spending on health and wellness. Due to the infection, many people working in corporate firms were infected and hospitalized. Many employers also started providing COVID-19 insurance to their workforce. The pandemic also prompted a shift towards wellness and preventive care. People started following healthy lifestyles, yoga, meditation, and fitness exercises to manage stress and health. This boosted the overall market growth.
Service Insights
The healthcare segment dominated the market in 2022 due to a large number of employees covered under healthcare insurance. Under the corporate insurance plan, an employee has many options to select health insurance. According to Kaiser Family Foundation, employees paid 17% of self-only insurance plans and 27% of family insurance plans in 2021. The organization provides group health insurance to employees in the event of a medical emergency. Preventive healthcare measures are also included in modern insurance plans, and employees who practice healthy habits are rewarded. This helps organizations to avoid sickness and improve overall employee efficiency.
The wellness segment is projected to witness the fastest growth in the coming years as wellness programs improve health and assist individuals in overcoming specific health-related issues. Employee health and wellness have a direct impact on an organization’s efficiency and productivity. Many corporates recognize this link and are willing to invest in such programs. As a result, the benefits of implementing comprehensive employee wellness programs exceed the program costs.
Organization Size Insights
The large-scale organization segment dominated the market with a share of 48.55% in 2022. The segment is estimated to dominate the market throughout the forecast period. Many large organizations have programs to help employees identify health issues and manage chronic conditions, such as biometric screenings, health risk assessments, and health promotion initiatives. Large organizations provide subsidized wellness services such as gym memberships, spa treatments, mental health sessions, and others. High adoption of these services among people working in large corporate firms is propelling segment growth. It is estimated that 64% of covered employees, including 21% of covered employees in small organizations and 82% of covered employees in large organizations, are enrolled in self-funded plans.
The medium-scale organization segment is projected to witness the fastest growth in the coming years. Rising spending on health and wellness programs such as yoga and meditation classes is rendering high growth of the segment. The increasing number of medium-sized organizations and the focus on employee health due to increased absenteeism and attrition are likely to boost the growth of the segment.
Some of the prominent players in the U.S. Employee-sponsored Healthcare Market include:
Segments Covered in the Report
This report forecasts revenue growth at country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2032. For this study, Nova one advisor, Inc. has segmented the U.S. Employee-sponsored Healthcare market.
By Service
By Organization Size
Chapter 1 Report Scope and Objectives
1.1 Market Segmentation
1.2 Regional Scope
1.3 Estimates and Forecast Timeline
1.4 Research Objectives
1.4.1 Objective - 1
1.4.2 Objective - 2
1.4.3 Objective - 3
Chapter 2 Methodology
2.1 Research Methodology
2.2 Information Procurement
2.2.1 Purchased Database
2.2.2 Nova one advisor’s Internal Database
2.2.3 Secondary Sources
2.2.4 Primary Research
2.2.5 Details of Primary Research
2.3 Information or Data Analysis
2.3.1 Data Analysis Models
2.4 Market Formulation & Validation
2.5 Model Details
2.5.1 Volume Price Analysis
2.6 List of Secondary Sources
2.7 List of Abbreviations
Chapter 3 Executive Summary
3.1 Market Outlook
3.1.1 Segment Outlook
3.1.2 Competitive Scenario
3.2 Market Snapshot
3.3 Market Segmentation
3.4 Competitive Landscape
Chapter 4 Market Variables, Trends & Scope
4.1 Market Lineage outlook
4.1.1 Parent market outlook
4.1.2 Ancillary/related market outlook
4.2 Market Dynamics
4.2.1 Market driver analysis
4.2.2 Market restraint analysis
4.3 Business Environment Analysis Tools
4.3.1 Porter’s five forces analysis
4.3.1.1 Competitive rivalry
4.3.1.2 Threat of new entrants
4.3.1.3 Bargaining power of buyers
4.3.1.4 Bargaining power of suppliers
4.3.1.5 Threat of substitutes
4.3.2 PESTEL Analysis
4.3.2.1 Political landscape
4.3.2.2 Economic and social landscape
4.3.2.3 Technological landscape
4.4 Impact of COVID-19: Qualitative Analysis
Chapter 5 U.S. Employee-sponsored Healthcare Market: Service Analysis
5.1 U.S. Employee-Sponsored Healthcare Service Market Share Analysis, 2023 & 2032
5.2 U.S. Employee-sponsored Healthcare Service Market: Segment Dashboard
5.3 Market Size & Forecasts and Trend Analyses, 2020 to 2032 for the Service Segment
5.3.1 Healthcare
5.3.1.1 Healthcare market, 2020 - 2032
5.3.2 Wellness
5.3.2.1 Wellness market, 2020 - 2032
Chapter 6 U.S. Employee-sponsored Healthcare Market: Organization Size Analysis
6.1 U.S. Employee-sponsored Healthcare Organization Size Market Share Analysis, 2023 & 2032
6.2 U.S. Employee-sponsored Healthcare Organization Size Market: Segment Dashboard
6.3 Market Size & Forecasts and Trend Analyses, 2020 to 2032 for the Organization Size Segment
6.3.1 Small-scale Organization
6.3.1.1 Small-scale organization market, 2020 - 2032
6.3.2 Medium-scale Organization
6.3.2.1 Medium-scale organization market, 2020 - 2032
6.3.3 Large-scale Organization
6.3.3.1 Large-scale organization market, 2020 - 2032
Chapter 7 Competitive Analysis
7.1 Company Categorization
7.2 Company Market Position Analysis
7.3 Strategy Mapping
7.4 Company Profiles/ Listing
7.4.1 United HealthCare Services, Inc.
7.4.1.1 Ccliniompany overview
7.4.1.2 Financial performance
7.4.1.3 Product benchmarking
7.4.1.4 Strategic initiatives
7.4.2 Kaiser Foundation Health Plan, Inc.
7.4.2.1 Company overview
7.4.2.2 Financial performance
7.4.2.3 Product benchmarking
7.4.2.4 Strategic initiatives
7.4.3 Anthem Insurance Companies, Inc.
7.4.3.1 Company overview
7.4.3.2 Financial performance
7.4.3.3 Product benchmarking
7.4.3.4 Strategic initiatives
7.4.4 Cigna
7.4.4.1 Company overview
7.4.4.2 Financial performance
7.4.4.3 Product benchmarking
7.4.4.4 Strategic initiatives
7.4.5 Blue Cross Blue Shield Association
7.4.5.1 Company overview
7.4.5.2 Financial performance
7.4.5.3 Product benchmarking
7.4.5.4 Strategic initiatives
7.4.6 Independence Blue Cross
7.4.6.1 Company overview
7.4.6.2 Financial performance
7.4.6.3 Product benchmarking
7.4.6.4 Strategic initiatives
7.4.7 Highmark Inc.
7.4.7.1 Company overview
7.4.7.2 Financial performance
7.4.7.3 Product benchmarking
7.4.7.4 Strategic initiatives
7.4.8 Health Net of California, Inc.
7.4.7.1 Company overview
7.4.7.2 Financial performance
7.4.7.3 Product benchmarking
7.4.7.4 Strategic initiatives
7.4.9 UPMC HEALTH PLAN, INC.
7.4.9.1 Company overview
7.4.9.2 Financial performance
7.4.9.3 Product benchmarking
7.4.9.4 Strategic initiatives
7.4.10 Nationwide Medical Insurance
7.4.10.1 Company overview
7.4.10.2 Financial performance
7.4.10.3 Product benchmarking
7.4.10.4 Strategic initiatives
7.4.11 ComPsych
7.4.11.1 Company overview
7.4.11.2 Financial performance
7.4.11.3 Product benchmarking
7.4.11.4 Strategic initiatives
7.4.12 Wellness Corporate Solutions
7.4.12.1 Company overview
7.4.12.2 Financial performance
7.4.12.3 Product benchmarking
7.4.12.4 Strategic initiatives
7.4.13 Virgin Pulse
7.4.13.1 Company overview
7.4.13.2 Financial performance
7.4.13.3 Product benchmarking
7.4.13.4 Strategic initiatives
7.4.14 EXOS
7.4.14.1 Company overview
7.4.14.2 Financial performance
7.4.14.3 Product benchmarking
7.4.14.4 Strategic initiatives
7.4.15 Marino Wellness
7.4.15.1 Company overview
7.4.15.2 Financial performance
7.4.15.3 Product benchmarking
7.4.15.4 Strategic initiatives
7.4.16 Privia Health
7.4.16.1 Company overview
7.4.16.2 Financial performance
7.4.16.3 Product benchmarking
7.4.16.4 Strategic initiatives
7.4.17 Vitality
7.4.17.1 Company overview
7.4.17.2 Financial performance
7.4.17.3 Product benchmarking
7.4.17.4 Strategic initiatives
7.4.18 Wellsource, Inc.
7.4.18.1 Company overview
7.4.18.2 Financial performance
7.4.18.3 Product benchmarking
7.4.18.4 Strategic initiatives
7.4.19 Central Corporate Wellness
7.4.19.1 Company overview
7.4.19.2 Financial performance
7.4.19.3 Product benchmarking
7.4.19.4 Strategic initiatives
7.4.20 Truworth Wellness
7.4.20.1 Company overview
7.4.20.2 Financial performance
7.4.20.3 Product benchmarking
7.4.20.4 Strategic initiatives
7.4.21 SOL Wellness
7.4.21.1 Company overview
7.4.21.2 Financial performance
7.4.21.3 Product benchmarking
7.4.21.4 Strategic initiatives
Cross-segment Market Size and Analysis for
Mentioned Segments
Additional Company Profiles (Upto 5 With No Cost)
Additional Countries (Apart From Mentioned Countries)
Country/Region-specific Report
Go To Market Strategy
Region Specific Market DynamicsRegion Level Market Share Import Export AnalysisProduction AnalysisOthers