North America Group Health Insurance Market Worth $1.66 Trillion By 2030

North America Group Health Insurance Market Growth & Trends

The North America group health insurance market size is anticipated to reach USD 1.66 trillion 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 demand for group health insurance in North America is rising due to increased awareness of health insurance and related benefits, whereby group health insurance gives businesses an advantage in improving relationships and engaging qualified personnel. For instance, statistics from the 2022 edition of Canadian Life & Health Insurance Facts indicate that in 2021, group plans accounted for over 90% of health insurance premiums in Canada, illustrating the country's increasing need for this type of health insurance plan and ultimately supporting the market expansion.

In 2020, COVID-19 negatively impacted the North American market due to decrease in the overall premium gathering, ultimately affected by decreased overall employment in the nations. For instance, according to a September 2022 article from the American Medical Association (JAWA Network), during the COVID-19 pandemic, employer-sponsored insurance (ESI) enrollment in the U.S. decreased by 7,23,796 members and did not return to pre-COVID-19 levels by mid-2021.

In 2022, U.S. accounted for majority of the revenue market share of North America group health insurance. Moreover, Canada is expected to expand fast over the forecast period with the CAGR of 2.4%, owing to increased acceptance group plans across different insurance domains. For instance, data from the 2022 edition of Canadian Life & Health Insurance Facts indicate that in 2021, group plans hold majority of the premium shares for not only just health insurance (approximately 90%) but also for life insurance (approximately 83%).

Furthermore, the growing influence of Preferred Provider Organization (PPO) and High-Deductible Health Plans with a Savings Option (HDHP/SO) plans contributes to the overall North American market. For instance, PPO plans accounted for 49% of covered workers' enrollment in 2022, according to the Kaiser Family Foundation's (KFF) Employer Health Benefits 2022 Annual Survey Report, reflecting rising demand for PPO plans in the United States.

Companies in the broader health insurance sector, which includes the group health insurance market, have been applying several approaches to retain clients and increase their market position - while the conventional employee benefits process of print applications/forms, lengthy 30-day onboarding, and disconnected employee interaction aren't entirely gone, one of these tactics is giving digital alternatives. Simply Benefits, for instance, provides Employee Health Benefits complete digitally from the beginning to the end through its Canadian Advisor partner, giving the organisation an advantage over its competitor.

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North America 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 PPO plans accounted for the largest revenue share of over 45%. These plans do not require a primary healthcare barrier to screen for specialists and hospital visits and provide lower cost sharing for in-network treatments. Furthermore, according to the KFF employer health benefits survey 2022 study, PPO plans accounted for 49% of covered worker enrolment in 2022 in the U.S., supporting the market growth.

• Based on firm size, the market is divided into large (employee size more than 200) and small (employee size less than 199 or equal to 199) firms. The large firm category led the market in 2022 and is likely to maintain its dominance throughout the forecast period. This dominance is bolstered further by the employee cost-sharing parameter, which demonstrates that employees at large companies have substantially lower deductible amounts, influencing the acceptance of group health insurance plans.

• Due to rising acceptance of employer-sponsored health insurance, the United States dominated the market and accounted for the largest revenue share of over 95% in 2022. Furthermore, the U.S. group health insurance market is expected to grow as a result of variables such as increased group health insurance awareness and the cost of such insurance in various U.S. regions.

• Prominent players in the North America group health insurance market include United Healthcare, KAISER FOUNDATION GRP, BCBS, and ANTHEM INC GRP, all of which have a strong presence in the US market. For instance, United Healthcare, a division of UnitedHealth Corporation (UHC), is a prominent health insurance in the U.S.

North America Group Health Insurance Market Segmentation

Grand View Research has segmented the North America group health insurance market based on plan type, firm size, and Country:

North America Group Health Insurance Plan Type Outlook (Revenue, Billion, 2018 - 2030)

• Health Maintenance Organization (HMO)

• Preferred Provider Organization (PPO)

• Point Of Service (POS)

• High-Deductible Health Plans With A Savings Option (HDHP/SO)

• Conventional (Indemnity Plans)

North America Group Health Insurance Firm Size Outlook (Revenue, Billion, 2018 - 2030)

• Small Firm

  • Self-funded or Level-funded Plan

  • Fully Insured

• Large Firm

North America Group Health Insurance Country Outlook (Revenue, Billion, 2018 - 2030)

• U.S.

  • Northeast

    • Connecticut

    • Massachusetts

    • Pennsylvania

    • New Jersey

    • New York

    • Others

    • New Hampshire

    • Rhode Island

    • Vermont

    • Maine

  • Midwest

    • Illinois

    • Indiana

    • Michigan

    • Ohio

    • Wisconsin

    • Iowa

    • Kansas

    • Minnesota

    • Missouri

    • Nebraska

    • Others

      • North Dakota

      • South Dakota

  • West Group

    • Arizona           

    • Colorado         

    • Nevada           

    • Utah    

    • California        

    • Oregon

    • Washington     

    • Others

      • Idaho

      • Montana

      • New Mexico

      • Wyoming

      • Alaska

      • Hawaii

  • South

    • Florida

    • Georgia

    • Maryland

    • North Carolina

    • South Carolina

    • Virginia

    • Alabama

    • Kentucky

    • Tennessee

    • Louisiana

    • Oklahoma

    • Texas

    • Others

      • Delaware

      • West Virginia

      • Mississippi

      • Arkansas 

• Canada

  • Newfoundland and Labrador (NL)

  • Prince Edward Island (PE)

  • Nova Scotia (NS)

  • New Brunswick (NB)

  • Quebec (QC)

  • Ontario (ON)

  • Manitoba (MB)

  • Saskatchewan (SK)

  • Alberta (AB)

  • British Columbia (BC)

  • Others

List of Key Players of North America Group Health Insurance Market

• HEALTH CARE SERVICE CORPORATION

• UNITEDHEALTH GROUP

• KAISER FOUNDATION HEALTH PLAN, INC.

• THE MANUFACTURERS LIFE INSURANCE COMPANY (MANULIFE)

• BLUE CROSS BLUE SHIELD ASSOCIATION

• ANTHEM, INC. (NOW ELEVANCE HEALTH)

• THE IHC GROUP

• CANADA LIFE ASSURANCE COMPANY (COMMONLY KNOWN AS CANADA LIFE)

• HEALTH PARTNERS GROUP LTD

• MISSISSIPPI INSURANCE GROUP, LLC

• PROVIDENCE HEALTH PLAN

• HARVARD PILGRIM HEALTH CARE, INC.