U.S. Employee-sponsored Healthcare Market Size, Share & Trends Analysis Report By Service (Healthcare, Wellness), By Organization Size (Small, Medium, Large), And Segment Forecasts, 2023 - 2030

U.S. Employee-sponsored Healthcare Market Size, Share & Trends Analysis Report By Service (Healthcare, Wellness), By Organization Size (Small, Medium, Large), And Segment Forecasts, 2023 - 2030

U.S. Employee-sponsored Healthcare Market Growth & Trends

The U.S. employee-sponsored healthcare market size is expected to reach USD 731.1 billion by 2030, expanding at a CAGR of 3.07% from 2023 to 2030, according to a new report by Grand View Research, Inc. 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.

U.S. Employee-Sponsored Healthcare Market Highlights

Based on service, the healthcare segment captured the largest market share in 2022 due to the high health-related expenses and increasing hospitalizations

The wellness segment is expected to witness the highest growth rate during the forecast period owing to an increasing focus on wellness and preventive care

Based on organization size, the large-scale organization segment accounted for the maximum revenue share in 2022 due to the large number of employees present in the large-scale organization, which are provided with various health and wellness programs

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