The global health insurance exchange market sizewas valued at USD XX Billion in 2022 and is projected to reach USD XX Billion by 2031, expanding at a CAGR of XX% during the forecast period, 2023-2031. The growth of the market is attributed to the federal health insurance mandates, policies, and numerous funding sources from government bodies worldwide.
Health insurance exchange (HIX) or health insurance marketplace is a service accessible in every state that helps small businesses, individuals, shops, and for families to enroll in affordable medical insurance. The HIX is accessible through call centers, website, and in-person assistance. In HIX consumer can compare insurance plans, get answers about health insurance plan, and can buy insurance according to need.
Consumer can buy health insurance coverage that is in compilation with the Patient Protection and Affordable Care Act (ACA) at ACA health exchanges, where they can select from a range of standardized and government-regulated health care plans offered by the private and public insurers companies in the exchange.
The COVID-19 pandemic outbreak had positive impact on the market. During the pandemic, need of health insurance among individuals in increased due to significant rise in medical cost and awareness about benefits of policy. Additionally, the global health care crisis resulted in rise in hospitalization of patient and need of better medical care facility, which is leading to the increased demand of HIX for purchasing health insurance.
Market Trends, Drivers, Restraints, and Opportunities
Rising integration of IT in healthcare sector is one of the key factors driving the market growth.
Growing trend towards contributed model for affordable healthcare services is projected to boost the market during the forecast period.
Increasing concern related to data privacy and security issues acts as a major challenge that can restrict the market growth in the coming years.
Lack of awareness about HIX especially in developing countries is expected to hamper the market growth during the projected timeline.
Escalating use of cloud-based technology for HIX service is anticipated to create significant growth opportunities for the market.
Scope of the Report
The report on the global health insurance exchange market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
Health Insurance Exchange Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
Components (Hardware, Services, and Software), Types (Public Exchange and Private Exchange), End-users (Brokerage Firms, Government Agencies, Health Players, and Third Parties), and Phases (Pre-implementation Phase, Implementation Phase, Program Management, and Independent Validation & Verification [Operations & Maintenance and Quality Assurance])
Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
Key Players Covered in the Report
CGI Inc.; IBM Corp.; MAXIMUS, Inc.; Xerox Corp. Ltd.; Cognosante, LLC; Hexaware Technologies; KPMG; Noridian Healthcare Solutions, LLC; Wipro Ltd.; Accenture; Deloitte Touche Tohmatsu Ltd.; Infosys Ltd.; Oracle Corp.; Connecture, Inc.; hCentive, Inc.; HP, Innovation Inc.; Microsoft Corp.; and Tata Consultancy Services
Market Segment Insights
Software segment to expand at robust growth rate
In terms of components, the global health insurance exchange market is segmented into hardware, services, and software. The software segment is estimated to expand at robust growth rate during the forecast period due to it lowers the operational cost, provide flexibility in exchange, and helps in data storage and management.
However, the services segment is anticipated to expand at a substantial CAGR in the coming years attributed to the need of periodic or routine upgrades of different functions and modules of the software components.
Private health exchange segment to register a high CAGR
On the basis of types, the market is bifurcated into public exchange and private exchange. The private health exchange segment is projected to register at high CAGR in the projected timeline owing to as it provides more insurance choice, offer help in making informed decision, and design suitable plans. Additionally, private exchange offer benefits in terms of cost, administration, and consumer retention is major driver of the segment.
On the other hand, the public exchange segment is anticipated to register a substantial CAGR during the forecast period attributed to the suitable for consumer with lower income and subsidize the cost of premium health insurances.
Outsourcing drives the third parties segment
Based on end-users, the global health insurance exchange market is divided into brokerage firms, government agencies, health players, and third parties. The third parties segment is expected to grow at a rapid pace during the forecast period due to the surge in outsourcing of insurance services to the third party administrators for smooth operation.
However, the brokerage firms segment is anticipated to expand at a substantial CAGR in the coming years owing to benefits offer by it, such as quick access to support, customized recommendations, and provide specialized health insurance knowledge.
Increased adoption expand the implementation segment growth rate
On the basis of phases, the market is fragmented into pre-implementation phase, implementation phase, program management, and independent validation & verification (IV & V). The independent validation & verification segment is further bifurcated into operations & maintenance and quality assurance.
The implementation segment is projected to expand at substantial growth rate during the forecast period owing to increased adoption of HIX and surge in government initiatives for implementation of health insurance program.
On the other hand, the independent validation & verification segment is anticipated to grow at robust growth rate in the near future attributed to need of post implementation services, such as hardware upgrade, store management, network operations, facility support, and trouble reporting.
North America is to constitute a key market share
In terms of region, the global health insurance exchange market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America is anticipated to constitute a key share of the market during the projected period owing to the increasing awareness among consumers about HIX and increased adoption of private health exchanges in the region.
However, the market of Asia Pacific is anticipated to grow at a rapid pace during the forecast period due to the rising adoption of HIX and healthcare information technology coupled with increasing outsourcing to private exchange in the region.
The global health insurance exchange market has been segmented on the basis of
- Public Exchange
- Private Exchange
- Brokerage Firms
- Government Agencies
- Health Players
- Third Parties
- Pre-implementation Phase
- Implementation Phase
- Program Management
- Independent Validation & Verification
- Operations & Maintenance
- Quality Assurance
- Asia Pacific
- North America
- Latin America
- Middle East & Africa
- CGI Inc.
- IBM Corp.
- MAXIMUS, Inc.
- Xerox Corp. Ltd.
- Cognosante, LLC
- Hexaware Technologies
- Noridian Healthcare Solutions, LLC
- Wipro Ltd.
- Deloitte Touche Tohmatsu Ltd.
- Infosys Ltd.
- Oracle Corp.
- Connecture, Inc.
- hCentive, Inc.
- HP, Innovation Inc.
- Microsoft Corp.
- Tata Consultancy Services
Key players competing in the global health insurance exchange market are CGI Inc.; IBM Corp.; MAXIMUS, Inc.; Xerox Corp. Ltd.; Cognosante, LLC; Hexaware Technologies; KPMG; Noridian Healthcare Solutions, LLC; Wipro Ltd.; Accenture; Deloitte Touche Tohmatsu Ltd.; Infosys Ltd.; Oracle Corp.; Connecture, Inc.; hCentive, Inc.; HP, Innovation Inc.; Microsoft Corp.; and Tata Consultancy Services.
Companies are focusing on product improvement to maintain their competitive position in the market. Furthermore, companies have been widely engaged in strategic partnership, merger & acquisition, new product launch, and collaborations to boost their market share and acquiring new buyers.