U.S. Group Health Insurance Market Size, Share & Trends Analysis Report By Plan Type (HMO, PPO, POS, HDHP/SO, Conventional (Indemnity plans)), By Firm Size (Small Firm, Large Firm), By Region, And Segment Forecasts, 2023 - 2030

U.S. Group Health Insurance Market Size, Share & Trends Analysis Report By Plan Type (HMO, PPO, POS, HDHP/SO, Conventional (Indemnity plans)), By Firm Size (Small Firm, Large Firm), By Region, And Segment Forecasts, 2023 - 2030

U.S. Group Health Insurance Market Growth & Trends

The U.S. group health insurance market size is anticipated to reach USD 1,611.3 billion by 2030, to expand at a CAGR of 2.3% from 2023 to 2030 according to a new report by Grand View Research, 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, 48.5% 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.

U.S. Group Health Insurance Market Report Highlights

• 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 preferred provider organization (PPO) held the highest revenue share, with over 45% of the market. Furthermore, due to its widespread adoption and acceptability compared to other plans like HMO, HDHP/SO contributed to the second-largest revenue share of over 25% of the market in 2022. According to the Kaiser Family Foundation's (KFF) Employer Health Benefits 2022 Annual Survey Report, a higher proportion of covered employees are covered in HDHP/SOs than in HMOs in small and large firms.
• Based on firm size, the market is segmented into small (employee size less than 199 or equal to 199) and large (employee size more than 200) firms. Due to relatively lower employee cost-sharing, large firms hold a major portion of the market and are anticipated to maintain dominance over the forecast period.
• South region dominated the market and accounted for the largest revenue share of over 35% in 2022 due to increased acceptance of employer-sponsored health insurance. The market for overall U.S. group health insurance market s anticipated to expand as a result of factors including rising group health insurance awareness and the cost of that insurance across different U.S. regions.
• Large companies plan to offer group health insurance to employers in all states in the U.S., which supports the market expansion. For instance, the November 2022 Health Insurance Market Concentration report from Government Accountability Office (GAO) stated that PREMERA BLUE CROSS GROUP had a 93.4% market share in Alaska in 2020, indicating company focused on the Small Group Health Insurance Market.

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