Health & Welfare Funds in the US - Industry Market Research Report

Health & Welfare Funds in the US - Industry Market Research Report

Health & Welfare Funds in the US

The industry provides healthcare coverage and welfare benefits to employees, unions and other professional associations. These funds function similarly to pension funds and employee benefit programs, which aim to provide cost-effective medical and welfare coverage on a nonprofit basis for the benefit of members. The current period has been tumultuous for the industry. COVID-19 caused states and localities to shut down businesses and enforce social distancing rules, which resulted in a drop in stock prices. Since health and welfare funds invest heavily in the stock market, this led to a decline in revenue for the industry. Asset markets have been declining even more significantly in recent years because of high inflation, the war in Ukraine and recessionary fears, which have caused revenue to plunge.

This industry comprises legal entities (i.e., funds, plans and programs) that provide medical, surgical, hospital, vacation, training and other health- and welfare-related employee benefits, exclusively for the sponsor’s employees or members. Unlike private insurers, health and welfare funds operate on a nonprofit basis for the benefit of members and their sponsors, not shareholders.

This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.