In the past five years, slow growth has characterized the Health and
The reforms enacted during the Obama administration in 2010 have been driving mergers and acquisitions, as insurers benefit from economies of scale and greater numbers of subscribers even though reimbursement rates are expected to decline. IBISWorld expects the consolidation trend to accelerate over the next two years in the Health and
Despite debate over medical-cost containment, health expenditures are expected to be the main driver of industry revenue growth over the five years to 2017. In 2012, IBISWorld expects revenue to increase 2.9%. In the five years that follow, revenue is forecast to rise consistently. The majority of growth will likely be associated with medical-cost inflation, but the industry is also projected to benefit from the aging US population. In addition, as the baby-boomer generation ages, more people will need medical coverage.
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IBISWorld industry Report Key Topics
This industry assumes the risks of and assigns premiums for health and medical insurance policies. Insurance is the transfer of the risk of a loss in exchange for payment. Operators also provide administrative services for self-funded insurance plans, whereby an employer provides health benefits to employees with its own funds. Under this structure, the industry operator is a third-party administrator and is not responsible for health benefit payments.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry