The U.S. group health insurance market size was exhibited at USD 1,346.00 billion in 2022 and is projected to hit around USD 1,706.26 billion by 2032, growing at a CAGR of 2.4% during the forecast period 2023 to 2032.
U.S. Group Health Insurance Market Report Scope
|Market Size in 2023||USD 1,378.30 Billion|
|Market Size by 2032||USD 1,706.26 Billion|
|Growth Rate From 2023 to 2032||CAGR of 2.4%|
|Forecast Period||2023 to 2032|
|Segments Covered||Plan Type, Firm 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||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 availability of group health insurance enables the advantage for companies with an advantage in the hiring phases that aids in retaining qualified personnel, and increases engagement and productivity at work as a whole. According to statistics from the Kaiser Family Foundation's Health Insurance Coverage of the Total Population data for 2021, 49.5% of Americans rely on a group health plan chosen by their employer for insurance coverage, showcasing the high demand for group health insurance.
In 2022, the South area owned the biggest proportion of the U.S. market, followed by the Midwest region. This is due to the presence of prominent insurance plans and a sizable population with standard group health insurance. Florida State has the largest revenue share for the South in 2022, while Illinois has a sizable revenue share supporting the Midwest region. Additionally, the market is aided by the growing popularity of Preferred Provider Organization (PPO), High-Deductible Health Plans with a Savings Option (HDHP/SO) plans. According to the Employer Health Benefits 2022 Annual Survey Report from the Kaiser Family Foundation (KFF), the PPO and HDHP/SO plans accounted for 49% and 29% of covered workers' enrolment in 2022, reflecting the rising demand for these plans.
The U.S. market for group health insurance is affected to some extent by the overall consolidation of the healthcare sector. For instance, at the start of 2020, Cigna and Oscar collaborated to sell health insurance policies to small businesses. The plans use member-focused technologies from Oscar and the regional and national provider networks of Cigna. As a result, Cigna and Oscar are able to provide small group health insurance across the nation in more than a dozen of the most important areas, including Kansas City, Georgia, Connecticut, Tennessee, and Arizona.
Plan Type Insights
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 2022, 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 2022 report, PPO plans accounted for 49% of the enrolment of covered workers in 2022. 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.
By Firm Size Insights
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 2022 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 2022 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 2021 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%.
Regional And State Insights
The South region held the largest share of the U.S. market in 2022 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 2022, 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 2021, 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 2022. Over the forecast period, the market will continue to rise due to factors such as group health insurance adoption and cost/benefit analysis.
Key Companies & Market Share Insights
One of the major health insurers in the country is United Healthcare, a division of UnitedHealth Corporation (UHC). For all kinds of enterprises, it provides a menu of group health insurance solutions, including specialty, extra dental, vision, pharmacy, and medical insurance plans. KAISER FOUNDATION GRP, BCBS, and ANTHEM INC GRP are a few of the other providers holding a notable presence in the overall U.S. group health insurance market.
Companies in the overall health insurance sector, which includes the market for group health insurance, have been implementing various techniques to retain its clients and expand their market presence - while print advertising isn't completely gone, one of these tactics is digital marketing. These days, however, digital advertising takes precedence over all other forms of marketing. In order to increase market share, having a strong social media presence is invaluable, especially when combined with ads on relevant networks, such as Twitter, LinkedIn, etc. Some prominent players in the U.S. group health insurance 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. Group Health Insurance market.
By Plan Type
By Firm Size