U.S. Individual Health Insurance Market Size to Hit Around USD 3.25 Trillion By 2032
The U.S. individual health insurance market size was exhibited at USD 1.8 trillion in 2022 and is projected to hit around USD 3.25 trillion by 2032, growing at a CAGR of 6.09% during the forecast period 2023 to 2032.
Key Takeaways:
U.S. Individual Health Insurance Market Report Scope
| Report Coverage | Details |
| Market Size in 2023 | USD 1.91 trillion |
| Market Size by 2032 | USD 3.25 trillion |
| Growth Rate From 2023 to 2032 | CAGR of 6.09% |
| Base Year | 2022 |
| Forecast Period | 2023 to 2032 |
| Segments Covered | Type, Demographics |
| 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 Health Group Incorporated; Elevance Health (formerly Anthem, Inc.); Health Care Service Corporation; Cigna; Kaiser Foundation Health Plan, Inc; Independence Holding Company (IHC Group); Providence Health Plan; Point32Health; Highmark |
An increase in insurer participation and new product offerings are among the major factors leading to the rising demand for individual health insurance in the U.S. For instance, according to a report published by KFF, several insurers entered the market in 2021 and are growing their service coverage, about 30 insurers entered the individual market across 20 states.
Furthermore, the growing prevalence of chronic disorders in the country such as diabetes, cancer, cardiovascular diseases, and neurodegenerative diseases is expected to increase the adoption of individual health insurance. For instance, according to the International Diabetes Federation, in 2021 there were about 33.2 diabetes cases in the U.S. These cases are projected to reach 37.7 million by 2032. The cost of treating chronic conditions like cancer and heart disease is very high in the U.S. Many people opt for health insurance as a result to prevent the sudden weight of having to pay a sizable sum of money for hospitals and other medical bills.
The U.S. healthcare system is characterized by a number of distinctive characteristics, including a high relative cost to individuals and a lack of universal coverage. The government runs initiatives that often pay for healthcare costs for the most economically challenged people such as the aged, the disabled, and the underprivileged. Since there is no one national health insurance system, the people in the U.S. mainly depend on employers who voluntarily offer health insurance coverage to their employees and dependents. However, there was a significant increase in unemployment during the COVID-19 pandemic, which had a detrimental influence on employee-sponsored health insurance and, to some extent, provided chances for private insurers.
Type Insights
Based on type, the market was dominated by the public segment in 2022, due to the widespread use of government-sponsored health insurance (Medicare) in the country. Medicare is a federal government scheme that offers health insurance for people aged 65 years or older and to certain individuals under 65 who have specific disabilities or diseases. Almost 55 million beneficiaries are covered under this scheme in the U.S.
The private segment is anticipated to grow at a considerable CAGR of 6.61% over the forecast period. Due to the escalating cost of healthcare, several individuals are making investments to better protect themselves from the financial hardships caused by healthcare. When compared to public plans like Medicare, private insurance typically offers more options. This may enable individuals to select the alternatives that are mostly required and omit those that are not. Shorter wait times, more specialized care, and more advanced facilities are further benefits of private health insurance. Public facilities may often be overloaded and may frequently offer substandard care.
Demographic Insights
The seniors segment dominated the U.S. individual health insurance industry in 2022 by capturing a share of over 91.0%, as in the U.S. all citizens 65 years and above are covered under the government-sponsored Medicare health insurance plan. Moreover, a few percent of this class do have other supplementary private health insurance plans. Moreover, Seniors are also more likely to buy insurance to offset the rising cost of healthcare due to their higher chance of contracting various chronic conditions.
The adult segment is estimated to showcase the fastest growth over the forecast period. This is because of the growing prevalence of lifestyle diseases in adults (e.g., diabetes, heart disease, obesity). Even though the majority of working individuals are protected by employer-sponsored health insurance plans, the protection offered by employers' insurance plans might occasionally be insufficient, which lowers the value of protection. Moreover, not all adults are covered under government-sponsored schemes, thus creating opportunities for the private insurance sector.
Regional Insights
Based on region the U.S. individual health insurance industry is segmented into Northeast, Midwest, South, and West and further subdivided into 50 states. The South region dominated the market by capturing over 38.0% of the overall market share, as a substantial population is covered by individual health insurance in the region. In 2022 Florida state held the largest market share of 22.1% in the south region, followed by Texas capturing about 22.0% as a large section of the population in these states are insured by individual health insurance.
The West region held the second-largest share of the individual health insurance market and is further expected to experience the fastest CAGR of 10.5% over the forecast period, owing to the increased adoption of individual health insurance in the states such as California, Washington, and Arizona.
Key Companies & Market Share Insights
Key market participants are focusing on implementing a number of strategies, including partnerships and collaborations, the launch of new products, and investments in regional insurance companies, to increase their presence and availability of services. For instance, in March 2021, Highmark In and HealthNow New York Inc. entered into an affiliation agreement. This deal aimed to create the fourth largest BCBS insurer by bringing in the Blue Cross and Blue Shield (BCBS) licensees that serve in the Pennsylvania, West Virginia, Delaware, and New York regions. Some prominent players in the U.S. individual 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. Individual Health Insurance market.
By Type
By Demographics
By Regional
Chapter 1. Methodology and Scope
1.1. Market Segmentation & Scope
1.1.1. Type
1.1.2. Demographics
1.1.3. Estimates and forecast timeline
1.2. Research Methodology
1.3. Information Procurement
1.3.1. Purchased database
1.3.2. Nova one advisor internal database
1.3.3. Secondary sources
1.3.4. Primary research
1.3.5. Details of primary research
1.4. Information or Data Analysis
1.4.1. Data analysis models
1.5. Market Formulation & Validation
1.6. Model Details
1.6.1. Commodity flow analysis (Model 1)
1.6.1.1. Approach 1: Commodity flow approach
1.6.2. Volume price analysis (Model 2)
1.6.2.1. Approach 2: Volume price analysis
1.7. List of Secondary Sources
1.8. List of Primary Sources
1.9. Objectives
1.9.1. Objective 1
1.9.2. Objective 2
Chapter 2. Executive Summary
2.1. Market Outlook
2.2. Segment Outlook
2.2.1. Type outlook
2.2.2. Demographic outlook
2.3. Competitive Insights
Chapter 3. U.S. Individual Health Insurance Market Variables, Trends & Scope
3.1. Market Lineage Outlook
3.1.1. Parent market outlook
3.1.2. Related/ancillary market outlook
3.2. Penetration & Growth Prospect Mapping
3.3. Industry Value Chain Analysis
3.3.1. Reimbursement framework
3.4. Market Dynamics
3.4.1. Market driver analysis
3.4.1.1. Increasing prevalence of chronic diseases
3.4.1.2. Increase in insurer participation and new product offerings
3.4.2. Market restraint analysis
3.4.2.1. Presence of alternative health insurance plans
3.5. U.S. Individual Health Insurance Market Analysis Tools
3.5.1. Industry Analysis - Porter’s
3.5.1.1. Supplier power
3.5.1.2. Buyer power
3.5.1.3. Substitution threat
3.5.1.4. Threat of new entrant
3.5.1.5. Competitive rivalry
3.5.2. PESTEL Analysis
3.5.2.1. Political landscape
3.5.2.2. Technological landscape
3.5.2.3. Economic landscape
3.5.3. Major Deals & Strategic Alliances Analysis
3.5.4. Market Entry Strategies
Chapter 4. U.S. Individual Health Insurance Market: Type Estimates & Trend Analysis
4.1. Definitions and Scope
4.1.1. Public
4.1.2. Private
4.2. Type Market Share, 2023 & 2032
4.3. Segment Dashboard
4.4. U.S. Individual Health Insurance Market by Type Outlook
4.5. Market Size & Forecasts and Trend Analyses, 2020 to 2032 for the following
4.5.1. Public
4.5.1.1. Public market estimates and forecast 2020 to 2032
4.5.2. Private
4.5.2.1. Private market estimates and forecast 2020 to 2032
Chapter 5. U.S. Individual Health Insurance Market: Demographics Estimates & Trend Analysis
5.1. Definitions and Scope
5.1.1. Minor
5.1.2. Adult
5.1.3. Senior
5.2. Demographic Market Share, 2023 & 2032
5.3. Segment Dashboard
5.4. U.S. Individual Health Insurance Market by Demographic Outlook
5.5. Market Size & Forecasts and Trend Analyses, 2020 to 2032 for the following
5.5.1. Minor
5.5.1.1. Minor market estimates and forecast 2020 to 2032
5.5.2. Adult
5.5.2.1. Adult market estimates and forecast 2020 to 2032
5.5.3. Senior
5.5.3.1. Senior market estimates and forecast 2020 to 2032
Chapter 6. U.S. Individual Health Insurance Market: Regional Market Analysis, 2020 - 2032
6.1. Definitions & Scope
6.2. Regional Market Share Analysis, 2023 & 2032
6.3. Regional Market Dashboard
6.4. Regional Market Snapshot
6.5. Regional Market Share, 2023
6.6. Market Size, & Forecasts, and Trend Analysis, 2020 to 2032:
6.7. Northeast
6.7.1. Northeast Market estimates and forecast, 2020 - 2032
6.7.2. Connecticut
6.7.2.1. Connecticut Market estimates and forecast, by product, 2020 - 2032
6.7.3. Massachusetts
6.7.3.1. Massachusetts Market estimates and forecast, by product, 2020 - 2032
6.7.4. Pennsylvania
6.7.4.1. Pennsylvania Market estimates and forecast, by product, 2020 - 2032
6.7.5. New Jersey
6.7.5.1. New Jersey Market estimates and forecast, by product, 2020 - 2032
6.7.6. New York
6.7.6.1. New York Market estimates and forecast, by product, 2020 - 2032
6.7.7. Others (Maine, New Hampshire, Rhode Island, Vermont)
6.7.7.1. Others Market estimates and forecast, by product, 2020 - 2032
6.8. Midwest
6.8.1. Midwest Market estimates and forecast, 2020 - 2032
6.8.2. Illinois
6.8.2.1. Illinois Market estimates and forecast, by product, 2020 - 2032
6.8.3. Indiana
6.8.3.1. Indiana Market estimates and forecast, by product, 2020 - 2032
6.8.4. Michigan
6.8.4.1. Michigan Market estimates and forecast, by product, 2020 - 2032
6.8.5. Ohio
6.8.5.1. Ohio Market estimates and forecast, by product, 2020 - 2032
6.8.6. Wisconsin
6.8.6.1. Wisconsin Market estimates and forecast, by product, 2020 - 2032
6.8.7. Iowa
6.8.7.1. lowa Market estimates and forecast, by product, 2020 - 2032
6.8.8. Minnesota
6.8.8.1. Minnesota Market estimates and forecast, by product, 2020 - 2032
6.8.9. Missouri
6.8.9.1. Missouri Market estimates and forecast, by product, 2020 - 2032
6.8.10. Others (Kansas, Nebraska, North Dakota, South Dakota)
6.8.10.1. Others Market estimates and forecast, by product, 2020 - 2032
6.9. South
6.9.1. South Market estimates and forecast, 2020 - 2032
6.9.2. Florida
6.9.2.1. Florida Market estimates and forecast, by product, 2020 - 2032
6.9.3. Georgia
6.9.3.1. Georgia Market estimates and forecast, by product, 2020 - 2032
6.9.4. Maryland
6.9.4.1. Maryland Market estimates and forecast, by product, 2020 - 2032
6.9.5. North Carolina
6.9.5.1. North Carolina Market estimates and forecast, by product, 2020 - 2032
6.9.6. South Carolina
6.9.6.1. South Carolina Market estimates and forecast, by product, 2020 - 2032
6.9.7. Virginia
6.9.7.1. Virginia Market estimates and forecast, by product, 2020 - 2032
6.9.8. Alabama
6.9.8.1. Alabama Market estimates and forecast, by product, 2020 - 2032
6.9.9. Kentucky
6.9.9.1. Kentucky Market estimates and forecast, by product, 2020 - 2032
6.9.10. Tennessee
6.9.10.1. Tennessee Market estimates and forecast, by product, 2020 - 2032
6.9.11. Louisiana
6.9.11.1. Louisiana Market estimates and forecast, by product, 2020 - 2032
6.9.12. Texas
6.9.12.1. Texas Market estimates and forecast, by product, 2020 - 2032
6.9.13. Others (Delaware, West Virginia, Mississippi, Arkansas, Oklahoma)
6.9.13.1. Others Market estimates and forecast, by product, 2020 - 2032
6.10. West
6.10.1. West Market estimates and forecast, 2020 - 2032
6.10.2. Arizona
6.10.2.1. Arizona Market estimates and forecast, by product, 2020 - 2032
6.10.3. Colorado
6.10.3.1. Colorado Market estimates and forecast, by product, 2020 - 2032
6.10.4. Nevada
6.10.4.1. Nevada Market estimates and forecast, by product, 2020 - 2032
6.10.5. California
6.10.5.1. California Market estimates and forecast, by product, 2020 - 2032
6.10.6. Oregon
6.10.6.1. Oregon Market estimates and forecast, by product, 2020 - 2032
6.10.7. Washington
6.10.7.1. Washington Market estimates and forecast, by product, 2020 - 2032
6.10.8. Others (Idaho, Montana, New Mexico, Utah, Wyoming, Alaska, Hawaii)
6.10.8.1. Others Market estimates and forecast, by product, 2020 - 2032
Chapter 7. Competitive Landscape
7.1. Recent Developments & Impact Analysis, By Key Market Participants
7.2. Company/Competition Categorization
7.2.1. Innovators
7.3. Vendor Landscape
7.3.1. List of key distributors and channel partners
7.3.2. Key customers
7.3.3. Key company market share analysis, 2023
7.3.4. United Health Group Incorporated
7.3.4.1. Company overview
7.3.4.2. Financial performance
7.3.4.3. Product benchmarking
7.3.4.4. Strategic initiatives
7.3.5. Elevance Health (formerly Anthem, Inc.)
7.3.5.1. Company overview
7.3.5.2. Financial performance
7.3.5.3. Product benchmarking
7.3.5.4. Strategic initiatives
7.3.6. Health Care Service Corporation
7.3.6.1. Company overview
7.3.6.2. Financial performance
7.3.6.3. Product benchmarking
7.3.6.4. Strategic initiatives
7.3.7. Cigna
7.3.7.1. Company overview
7.3.7.2. Financial performance
7.3.7.3. Product benchmarking
7.3.7.4. Strategic initiatives
7.3.8. Kaiser Foundation Health Plan, Inc
7.3.8.1. Company overview
7.3.8.2. Financial performance
7.3.8.3. Product benchmarking
7.3.8.4. Strategic initiatives
7.3.9. Independence Holding Company (IHC Group)
7.3.9.1. Company overview
7.3.9.2. Financial performance
7.3.9.3. Product benchmarking
7.3.9.4. Strategic initiatives
7.3.10. Providence Health Plan
7.3.10.1. Company overview
7.3.10.2. Financial performance
7.3.10.3. Product benchmarking
7.3.10.4. Strategic initiatives
7.3.11. Point32Health
7.3.11.1. Company overview
7.3.11.2. Financial performance
7.3.11.3. Product benchmarking
7.3.11.4. Strategic initiatives
7.3.12. Highmark
7.3.12.1. Company overview
7.3.12.2. Financial performance
7.3.12.3. Product benchmarking
7.3.12.4. 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