The U.S. group health insurance market size was exhibited at USD 14.45 billion in 2023 and is projected to hit around USD 18.32 billion by 2033, growing at a CAGR of 2.4% during the forecast period 2024 to 2033.
| Report Coverage | Details |
| Market Size in 2024 | USD 14.80 Billion |
| Market Size by 2033 | USD 18.32 Billion |
| Growth Rate From 2024 to 2033 | CAGR of 2.4% |
| Base Year | 2023 |
| Forecast Period | 2024-2033 |
| Segments Covered | Plan Type, Firm Size, Region |
| Market Analysis (Terms Used) | Value (US$ Million/Billion) or (Volume/Units) |
| Regional Scope | Northeast, Midwest, South, West |
| Key Companies Profiled | Health Care Service Corporation; Unitedhealth Group; Kaiser Foundation Health Plan, Inc.; Blue Cross Blue Shield Association; Anthem, Inc. (Now Elevance Health); The IHC Group; Health Partners Group Ltd; Mississippi Insurance Group, LLC; Providence Health Plan; Harvard Pilgrim Health Care, Inc. |
The increasing demand for group health insurance, known as employer-sponsored insurance, and its rising average premium price has led to a spectacular development of the U.S. group health insurance market. Furthermore, rising internet usage and digitalization positively influence the overall U.S. market. In 2020, the COVID-19 pandemic decreased employment and negatively impacted employer-sponsored insurance. For instance, according to September 2023 article from the American Medical Association (JAWA Network), employer-sponsored insurance (ESI) enrollment decreased by 7,23,796 members during the COVID-19 pandemic and did not return to pre-COVID levels by mid-2022.
Furthermore, according to KFF's Employer Health Benefits Survey 2023 report, as the situation of uncertainties post-COVID-19 pandemic continues to arise - inflation has increased to 8% in 2023 while worker wages have increased by 6.7%. However, these changes have no direct effect on the premium in 2023, where the average annual premiums for employer-sponsored health insurance are USD 7,911 for single coverage and USD 22,463 for family coverage, respectively. These amounts are relatively similar to the premium in 2022.
While many of the 2023 premium were decided upon in the fall of 2022, before the degree of price rises was apparent, this shows that the growing inflation and worker earnings did not directly influence the group health insurance premiums in 2023. In addition, it is anticipated that average premiums would rise in 2023 as long as inflation maintains above-normal levels, which will have a limited impact on market expansion.
The rising premium cost of group health insurance has been a crucial metric for insurance companies. According to KFF's Employer Health Benefits Survey report for 2022 and 2023, these premium costs are rising yearly. The table below shows the average annual premium for single and family coverage.
Based on plan type, the market is segmented into five types - health maintenance organization (HMO), preferred provider organization (PPO), point of service (POS) plans, high-deductible plan with a savings option (HDHP/SO), and conventional (also known as indemnity plan).
In 2023, the PPO plan's revenue share was over 45%, which was the highest. These plans are the types that do not require a primary healthcare barrier to screen for specialists and hospital visits and offer lower cost sharing for in-network services. Furthermore, according to the KFF employer health benefits survey 2023 report, PPO plans accounted for 49% of the enrolment of covered workers in 2023. Furthermore, the average costs for single coverage (USD 8,272) and family coverage (USD 23,426) in PPOs are greater than the overall average prices for both single and family coverage.
Based on firm size, the market is segmented into two types - small (employee size less than 199 or equal to 199) and large (employee size more than 200) firms. The large firm segment dominated the market in 2023 and is expected to maintain its dominance throughout the forecast period. This dominance is further supported by the employee cost-sharing parameter, which reveals that workers at large companies have relatively lower average deductible amounts, influencing the acceptability of group health insurance programs. For instance, according to the KFF's 2023 survey report, the average deductible for covered employees at small businesses is significantly higher than that for large companies, coming in at USD 2,543 vs. USD 1,493.
Furthermore, the small firm category is further divided into Self-funded or level-funded plans and fully insured plans. Over the forecast period, the level-funded plan segment would expand rapidly, with a CAGR of around 4.9%. This is reinforced by the fact that according to the Employer Health Benefits 2022 Annual Survey Report from KFF - 42% of small businesses that offer health benefits offered level-funded plans; this is significantly higher than the number for 2020, when this percent was 13%.
The South region held the largest share of the U.S. market in 2023 due to the presence of noteworthy insurance plans and the substantial population covered by overall group health insurance.
In terms of revenue share for the South in 2023, Florida State dominated. The fact that a sizable portion of the population in Florida has employer-sponsored coverage serves as the key supporting evidence. For instance, in Florida, 40% (21.3048 million people) of the population had employer-sponsored health insurance in 2022, according to the KFF's insurance coverage data.
Furthermore, the Midwest region continued to hold the second-largest share of the U.S. group health insurance market, with the state of Illinois providing the greatest amount of revenue share in 2023. Over the forecast period, the market will continue to rise due to factors such as group health insurance adoption and cost/benefit analysis.
Health Care Service Corporation
Unitedhealth Group
Kaiser Foundation Health Plan, Inc.
Blue Cross Blue Shield Association
Anthem, Inc. (Now Elevance Health)
The IHC Group
Health Partners Group Ltd
Mississippi Insurance Group, LLC
Providence Health Plan
Harvard Pilgrim Health Care, Inc.
This report forecasts revenue growth at country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2022 to 2033. For this study, Nova one advisor, Inc. has segmented the U.S. group health insurance market
Plan Type
Firm Size
Region
Chapter 1. Methodology and Scope
1.1. Market Segmentation and Scope
1.2. Market Definitions
1.2.1. Plan Type
1.2.2. Firm Size
1.2.2.1. Small Firm - Plan Funding Type
1.3. Research Methodology
1.4. Information Procurement
1.4.1. Purchased Database
1.4.2. Internal Database
1.4.3. Secondary Sources & Third-Party Perspectives
1.4.4. Primary Research
1.4.5. Details of Primary Research
1.5. Information Analysis
1.5.1. Data Analysis Models
1.6. Market Formulation & Data Visualization
1.6.1. Premium Price - Employer-Sponsored Volume Analysis
1.6.2. Bottom-Up Market Estimation
1.7. Data Validation & Publishing
1.8. U.S. Group Health Insurance Market: CAGR Calculation
1.9. List of Abbreviations
1.10. Objectives
1.10.1. Objective - 1
1.10.2. Objective - 2
1.10.3. Objective - 3
1.10.4. Objective - 4
1.11. List of Secondary Sources
Chapter 2. Executive Summary
2.1. Market Snapshot
2.2. Segmental Snapshot
2.3. Competitive Insights Snapshot
Chapter 3. Market Variables, Trends, and Scope
3.1. U.S. Group Health Insurance Market - Market Dynamics
3.1.1. Market Driver Analysis
3.1.1.1. Increasing adoption of group health insurance
3.1.1.2. Increasing government initiatives
3.1.1.3. Growing awareness of the overall health insurance
3.1.2. Market Restraint Analysis
3.1.2.1. Limited reach of certain group health insurance plans in the U.S region
3.2. Business Environmental Tools Analysis: U.S. Group Health Insurance Market
3.2.1. Porter’s Five Forces Analysis
3.2.2. PESTLE Analysis
3.3. Regulatory Framework
3.4. Employer-sponsored Insured Population, by state, from 2008 - 2021
3.5. Covid-19 Impact Analysis
Chapter 4. U.S. Group Health Insurance Market: Plan Type Estimates & Trend Analysis
4.1. U.S. Group Health Insurance Market, By Plan Type: Key Takeaways
4.2. U.S. Group Health Insurance Market: Plan Type Movement & Market Share Analysis, 2024 & 2033
4.3. Preferred provider organization (PPO)
4.3.1. Preferred provider organization (PPO)Market Estimates And Forecasts, 2021 - 2033
4.4. Health maintenance organization (HMO)
4.4.1. Health maintenance organization (HMO) Market Estimates And Forecasts, 2021 - 2033
4.5. Point of service (POS)
4.5.1. Point of service (POS) Market Estimates And Forecasts, 2021 - 2033
4.6. High-Deductible Health Plans with a Savings Option (HDHP/SO)
4.6.1. High-Deductible Health Plans with a Savings Option (HDHP/SO) Market Estimates And Forecasts, 2021 - 2033
4.7. Conventional (Indemnity plans)
4.7.1. Conventional (Indemnity plans)
4.7.2. High-Deductible Health Plans with a Savings Option (HDHP/SO) Market Estimates And Forecasts, 2021 - 2033
Chapter 5. U.S. Group Health Insurance Market: Firm Size Estimates & Trend Analysis
5.1. U.S. Group Health Insurance Market, By Firm Size: Key Takeaways
5.2. U.S. Group Health Insurance Market: Firm Size Movement & Market Share Analysis, 2024 & 2033
5.3. Large Firm
5.3.1. Large firm Market Estimates And Forecasts, 2021 - 2033
5.3.2. Self-Funded Or Level-Funded Plan Market Estimates And Forecasts, 2021 - 2033
5.3.3. Fully Insured Market Estimates And Forecasts, 2021 - 2033
5.4. Small Firm
5.4.1. Small firm Market Estimates And Forecasts, 2021 - 2033
Chapter 6. U.S. Group Health Insurance Market: Regional Estimates & Trend Analysis
6.1. U.S. Group Health Insurance Market: Regional Movement Analysis, 2024 & 2033
6.2. Key Country Dynamics
6.3. Competitive Scenario
6.4. Regulatory Framework
6.5. South
6.5.1. South U.S. Group Health Insurance Market Estimates And Forecasts, 2021 - 2033
6.5.2. Florida
6.5.2.1. Florida Group Health Insurance Market estimates and forecasts, 2021 - 2033
6.5.3. Georgia
6.5.3.1. Georgia Group Health Insurance Market estimates and forecasts, 2021 - 2033
6.5.4. Maryland
6.5.4.1. Maryland Group Health Insurance Market estimates and forecasts, 2021 - 2033
6.5.5. North Carolina
6.5.5.1. North Carolina Group Health Insurance Market estimates and forecasts, 2021 - 2033
6.5.6. Virginia
6.5.6.1. Virginia Group Health Insurance Market estimates and forecasts, 2021 - 2033
6.5.7. Alabama
6.5.7.1. Alabama Group Health Insurance Market estimates and forecasts, 2021 - 2033
6.5.8. Kentucky
6.5.8.1. Kentucky Group Health Insurance Market estimates and forecasts, 2021 - 2033
6.5.9. Tennessee
6.5.9.1. Tennessee Group Health Insurance Market estimates and forecasts, 2021 - 2033
6.5.10. Louisiana
6.5.10.1. Louisiana Group Health Insurance Market estimates and forecasts, 2021 - 2033
6.5.11. Oklahoma
6.5.11.1. Oklahoma Group Health Insurance Market estimates and forecasts, 2021 - 2033
6.5.12. Texas
6.5.12.1. Texas Group Health Insurance Market estimates and forecasts, 2021 - 2033
6.5.13. Others (Delaware, West Virginia, Mississippi, Arkansas)
6.5.13.1. Others Group Health Insurance Market estimates and forecasts, 2021 - 2033
6.6. Northeast
6.6.1. Northeast U.S. Group Health Insurance Market Estimates And Forecasts, 2021 - 2033
6.6.2. Connecticut
6.6.2.1. Connecticut Group Health Insurance Market estimates and forecasts, 2021 - 2033
6.6.3. Massachusetts
6.6.3.1. Massachusetts Group Health Insurance Market estimates and forecasts, 2021 - 2033
6.6.4. Pennsylvania
6.6.4.1. Pennsylvania Group Health Insurance Market estimates and forecasts, 2021 - 2033
6.6.5. New Jersey
6.6.5.1. New Jersey Group Health Insurance Market estimates and forecasts, 2021 - 2033
6.6.6. New York
6.6.6.1. New York Group Health Insurance Market estimates and forecasts, 2021 - 2033
6.6.7. Others (New Hampshire, Rhode Island, Vermont, Maine)
6.6.7.1. Others Group Health Insurance Market estimates and forecasts, 2021 - 2033
6.7. Midwest
6.7.1. Midwest U.S. Group Health Insurance Market Estimates And Forecasts, 2021 - 2033
6.7.2. Illinois
6.7.2.1. Illinois Group Health Insurance Market estimates and forecasts, 2021 - 2033
6.7.3. Indiana
6.7.3.1. Indiana Group Health Insurance Market estimates and forecasts, 2021 - 2033
6.7.4. Michigan
6.7.4.1. Michigan Group Health Insurance Market estimates and forecasts, 2021 - 2033
6.7.5. Ohio
6.7.5.1. Ohio Group Health Insurance Market estimates and forecasts, 2021 - 2033
6.7.6. Wisconsin
6.7.6.1. Wisconsin Group Health Insurance Market estimates and forecasts, 2021 - 2033
6.7.7. Iowa
6.7.7.1. Iowa Group Health Insurance Market estimates and forecasts, 2021 - 2033
6.7.8. Kansas
6.7.8.1. Kansas Group Health Insurance Market estimates and forecasts, 2021 - 2033
6.7.9. Minnesota
6.7.9.1. Minnesota Group Health Insurance Market estimates and forecasts, 2021 - 2033
6.7.10. Missouri
6.7.10.1. Missouri Group Health Insurance Market estimates and forecasts, 2021 - 2033
6.7.11. Nebraska
6.7.11.1. Nebraska Group Health Insurance Market estimates and forecasts, 2021 - 2033
6.7.12. Others (North Dakota, South Dakota)
6.7.12.1. Others Group Health Insurance Market estimates and forecasts, 2021 - 2033
6.8. West
6.8.1. West U.S. Group Health Insurance Market Estimates And Forecasts, 2021 - 2033
6.8.2. Arizona
6.8.2.1. Arizona Group Health Insurance Market estimates and forecasts, 2021 - 2033
6.8.3. Colorado
6.8.3.1. Colorado Group Health Insurance Market estimates and forecasts, 2021 - 2033
6.8.4. Nevada
6.8.4.1. Nevada Group Health Insurance Market estimates and forecasts, 2021 - 2033
6.8.5. Utah
6.8.5.1. Utah Group Health Insurance Market estimates and forecasts, 2021 - 2033
6.8.6. California
6.8.6.1. California Group Health Insurance Market estimates and forecasts, 2021 - 2033
6.8.7. Oregon
6.8.7.1. Oregon Group Health Insurance Market estimates and forecasts, 2021 - 2033
6.8.8. Washington
6.8.8.1. Washington Group Health Insurance Market estimates and forecasts, 2021 - 2033
6.8.9. Others (Idaho, Montana, New Mexico, Wyoming, Alaska, Hawaii)
6.8.9.1. Others Group Health Insurance Market estimates and forecasts, 2021 - 2033
Chapter 7. Competitive Landscape
7.1. Company Categorization
7.2. Company Market Share Analysis, 2024
7.3. Strategy Mapping
7.4. Company Profiles/Listing
7.4.1. HEALTH CARE SERVICE CORPORATION
7.4.1.1. Overview
7.4.1.2. Financial Performance (Net Revenue/Sales/EBITDA/Gross Profit)
7.4.1.3. Product Benchmarking
7.4.1.4. Strategic Initiatives
7.4.2. UNITEDHEALTH GROUP
7.4.2.1. Overview
7.4.2.2. Financial Performance (Net Revenue/Sales/EBITDA/Gross Profit)
7.4.2.3. Product Benchmarking
7.4.2.4. Strategic Initiatives
7.4.3. KAISER FOUNDATION HEALTH PLAN, INC.
7.4.3.1. Overview
7.4.3.2. Financial Performance (Net Revenue/Sales/EBITDA/Gross Profit)
7.4.3.3. Product Benchmarking
7.4.3.4. Strategic Initiatives
7.4.4. BLUE CROSS BLUE SHIELD ASSOCIATION
7.4.4.1. Overview
7.4.4.2. Financial Performance (Net Revenue/Sales/EBITDA/Gross Profit)
7.4.4.3. Product Benchmarking
7.4.4.4. Strategic Initiatives
7.4.5. ANTHEM, INC. (NOW ELEVANCE HEALTH)
7.4.5.1. Overview
7.4.5.2. Financial Performance (Net Revenue/Sales/EBITDA/Gross Profit)
7.4.5.3. Product Benchmarking
7.4.5.4. Strategic Initiatives
7.4.6. THE IHC GROUP
7.4.6.1. Overview
7.4.6.2. Financial Performance (Net Revenue/Sales/EBITDA/Gross Profit)
7.4.6.3. Product Benchmarking
7.4.6.4. Strategic Initiatives
7.4.7. HEALTH PARTNERS GROUP LTD
7.4.7.1. Overview
7.4.7.2. Financial Performance (Net Revenue/Sales/EBITDA/Gross Profit)
7.4.7.3. Product Benchmarking
7.4.7.4. Strategic Initiatives
7.4.8. MISSISSIPPI INSURANCE GROUP, LLC
7.4.8.1. Overview
7.4.8.2. Financial Performance (Net Revenue/Sales/EBITDA/Gross Profit)
7.4.8.3. Product Benchmarking
7.4.8.4. Strategic Initiatives
7.4.9. PROVIDENCE HEALTH PLAN
7.4.9.1. Overview
7.4.9.2. Financial Performance (Net Revenue/Sales/EBITDA/Gross Profit)
7.4.9.3. Product Benchmarking
7.4.9.4. Strategic Initiatives
7.4.10. HARVARD PILGRIM HEALTH CARE, INC.
7.4.10.1. Overview
7.4.10.2. Financial Performance (Net Revenue/Sales/EBITDA/Gross Profit)
7.4.10.3. Product Benchmarking
7.4.10.4. Strategic Initiatives
Cross-segment Market Size and Analysis for Mentioned Segments
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Additional Countries (Apart
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Go To Market Strategy
Region Specific Market DynamicsRegion Level Market Share Import Export AnalysisProduction AnalysisOthers