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US Health Insurance Market: Navigating COVID-19 Impact and Rising Chronic Disease Cases
US health insurance market faces COVID-19 impact & rising chronic diseases. Telemedicine growth, affordability challenges, & aging population pose opportunities & challenges.
By: Makreo Research and Consulting
The impact of COVID-19 has resulted in a slower growth rate of health spending in 2020 due to reduced utilization of medical services. However, the Gross Domestic Product (GDP) contribution to health has experienced a historic increase from 17.6% in 2019 to 19.7% in 2020.
As the number of chronic disease cases, including diabetes, cancer, cardiovascular disease, and neurological disorders, continues to rise, there is an expected increase in the demand for health insurance. Treating chronic illnesses can be costly, making health insurance an attractive option to mitigate the financial burden associated with hospitalization and medical expenses.
Recent key developments in the US health insurance market include Medicare Advantage providers repaying $4.7 billion to the Centers for Medicare & Medicaid Services (CMS) to rectify overpayments and a reduction in the number of uninsured individuals, reaching an all-time low in January 2023.
However, challenges such as an aging population, rising healthcare costs, unhealthy lifestyles, and affordability issues persist. The aging population is expected to drive up healthcare costs, and efforts must be made to address the sustainability of programs like Medicare. Unhealthy lifestyle choices contribute to the increasing burden of chronic diseases, offering an opportunity for the insurance business. Additionally, the rise of telemedicine services presents an avenue for health insurance providers to enhance accessibility to care.
With affordability challenges faced by end payers, employers are shifting healthcare costs to employees, leading to increased enrollment in high-deductible health insurance plans. This highlights the need for innovative solutions to ensure accessible and affordable coverage.
In conclusion, the US health insurance market continues to evolve amidst the COVID-19 pandemic and the rise in chronic diseases. Adapting to these challenges while leveraging opportunities like telemedicine services and addressing affordability concerns will be crucial for the industry's growth and ensuring comprehensive healthcare coverage for all Americans.
Find out more:-
United States Health Insurance Market Revenue and Forecast (2018-2028)- Analysis by Private and Public Insurance (https://www.makreo.com/