Self care: Rebounding employment is forecast to increase the pool of insured people
Health & Medical Insurance Industry in the US
IBISWorld’s analysts constantly monitor the industry impacts of current events in real-time – here is an update of how this industry is likely to be impacted as a result of the global COVID-19 pandemic:
The Health and Medical Insurance industry has obtained a greater share of its revenue from the public sector amid the COVID-19 (coronavirus) pandemic. For more information, please see the Current Performance chatper.
Over the five years to 2026, the industry is expected to benefit from improving economic conditions and regulatory change. For more detail, please see the Industry Outlook chapter.
During the Great Recession, the Health and Medical Insurance industry saw revenue rise in both 2008 and 2009, respectively. Although demand from the private market declined as the unemployment rate rose and Americans lost their jobs, growth was spurred by an increase in the number of people covered through Medicaid, which is a government-sponsored insurance program from the unemployed and those with low incomes. As a result, the industry benefits from what is essentially a countercyclical stabilizing measure. Amid the current coronavirus pandemic, further expansions to eligibility for Medicaid have driven industry revenue growth, as public health has become a greater concern than it was during the Great Recession. As a result, industry revenue is projected to increase 6.1% and 6.6% in 2020 and 2021, respectively.
Note: The content in this report is currently being updated to reflect the trends outlined above.