The global health insurance exchange market demand is expected to witness considerable growth over the forecast period. Health insurance exchange is the latest trend in an online market place. Recent market trends indicate that the global online health insurance market place or exchange industry is estimated at around USD 2 billion as reported by Forbes.
The key drivers identified for this market include federal health insurance mandates, policies (Obama Care Policy in the U.S.), and numerous funding sources from federal governments. The shift in trend towards contributing model is expected to help reduce health care costs and benefit consumers by making it affordable.
The growing application of IT in the health sector and the shift in trend towards integrated environments, among several other growth factors have ensured that cloud-based technology is expected to provide lucrative opportunities in the health insurance exchange market.
According to the Affordable Care Act (ACA), health insurance exchange is a key provision that helps to establish a selection or a list of vendors competing by diverse offerings such as qualified plans.
These qualified plans are designed to meet standards that are set by the ACA. Stiff competition between the providers is also likely to encourage them to provide improved quality and pricing of the offered plans.
The strategy is practically carried out through online portals where consumers visit virtual ‘shops’ for their health insurance. Those people who qualify for cost-sharing subsidies or premium subsidies can obtain these grants via these online portals in various health insurance exchange schemes.
The concept of health insurance exchange has originated from the heart of Obama Care in the U.S. An array of online shopping centers filled with medical benefits have been created under the program, and the idea was commercialized in 2010.
The motive behind this online commercial insurance selling and buying are to create an expedient for medical coverage by dismissing airplane tickets. It is done to avoid bringing insurance companies together which compete with each other to prevent affordable plans.
The health insurance business transaction is carried out in three phases. The implementation phase dominated the global market in terms of revenue in recent years.
The operation and maintenance phase help to determine the potential market growth, which is measured in terms of increased post-implementation requirements, which includes facility support, systems management, network operations, hardware and software upgrades, trouble reporting, troubleshooting, storage management, system performance reporting and monitoring and disaster recovery services.
The health insurance exchange industry is mainly driven by third-party administrators (TPA), brokerages, consultancies, and firms catering to diverse end-use industries. Health insurance exchange has several components including services and software, which are expected to gain higher revenues as compared to hardware components.
Periodic or routine upgrades of different modules and functions of the software components to foster compatibility are likely to spur segment growth. Compatibility requires the installation of additional features, and information on recurring nature of services which are necessary for ongoing reports. The compatibility framework also checks the increased shift from legacy mainframes to the cloud and Saas IT-enabled business models.
IT vendors generate the highest revenue for the market, measured regarding several components such as planning, designing, implementation of exchanges, system integration, program management, operations, and maintenance.
However, factors such as data privacy, security issues, high capital investments, lack of awareness especially for the private exchanges, the complex set of technologies, and changing regulations are expected to thwart industry growth. Lack of skilled manpower regarding knowledge on healthcare domain and technical expertise may also pose a challenge to market growth over the forecast period.
The global industry has been segmented by type, phase, component, end-use industries, and geography. By type, the health insurance exchange market is further divided into public and private exchanges.
By stage, the health insurance exchange market is divided into pre-implementation phase, implementation phase or infrastructure delivery, program management, independent validation and verification (IV &V) which includes quality assurance (QA), operations and maintenance.
By component, the global health insurance exchange market is divided into services, software, and hardware. Based on end-user, the market is further divided into government agencies, third parties, brokerage firms, health plans/players. Major regions covered in this report include North America, Europe, Asia, and the rest of the world (RoW).
The U.S. occupies the highest share in the global industry and is expected to continue dominating the global market over the forecast period. North America is also likely to witness highest CAGR on account of increased adoption of private health exchanges among increasingly aware consumers.
Currently, Asia, Europe, and RoW do not have a considerable stake in this market. However, rising adoption of HCIT (Healthcare Information Technology) and HIE (Health Insurance Exchange) and increased outsourcing are likely to generate higher revenues over the forecast period.
Prominent players in this market include Accenture, CGI Inc., Deloitte, IBM Corporation, Infosys, MAXIMUS, Oracle Corporation, Xerox Corporation Ltd., Connecture, Cognosante, hCentive, Hexaware – Technologies, HP, Innovation Inc., KPMG, Microsoft Corporation, Noridian Healthcare Solutions, TCS, Wipro Ltd., and others.
NEED A CUSTOM REPORT?
We can customize every report - free of charge - including purchasing stand-alone sections or country-level reports, as well as offer affordable discounts for start-ups & universities.
Contact us now to get our best pricing.
ESOMAR certified & member
Leading SME award by D&B
"The quality of research they have done for us has been excellent."
Artificial Intelligence (AI), Virtual Reality (VR), and Augmented Reality (AR) solutions are anticipated to substantially contribute while responding to the COVID-19 pandemic and address continuously evolving challenges. The existing situation owing to the outbreak of the epidemic will inspire pharmaceutical vendors and healthcare establishments to improve their R&D investments in AI, acting as a core technology for enabling various initiatives. The insurance industry is expected to confront the pressure associated with cost-efficiency. Usage of AI can help in reducing operating costs, and at the same time, can increase customer satisfaction during the renewal process, claims, and other services. VR/AR can assist in e-learning, for which the demand will surge owing to the closure of many schools and universities. Further, VR/AR can also prove to be a valuable solution in providing remote assistance as it can support in avoiding unnecessary travel. The report will account for Covid19 as a key market contributor.