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United States Healthcare Discount Plan Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

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  • 111 Pages
  • June 2022
  • Region: United States
  • Mordor Intelligence
  • ID: 5616927
UP TO OFF until Dec 31st 2023
The United States healthcare discount plan market is expected to register a CAGR of 11.3% during the forecast period of the study (2022-2027).

The emergence of the COVID-19 pandemic severely impacted the healthcare system of the country, as the United States recorded one of the highest numbers of COVID-19 cases and deaths, globally. Due to the lockdown restrictions and other limitations, initially, healthcare services other than COVID-19 were impacted in the country. For instance, according to a research study published by David Blumenthal et. al., in October 2020, due to the pandemic, there were unprecedented changes in the demand for health services and in the first months of the crisis, office-based practices saw a 60% drop in visitors numbers which had its impact on the studied market. However, as the United States was one of the most severely affected countries by the COVID-19, the demand for healthcare services and prescriptions increased after the initial decline, and thus, the studied market is expected to grow with the increasing demand for the healthcare services in the country.

The chronic diseases such as cardiovascular diseases, cancer, musculoskeletal disorders, among many others are highly prevalent in the United States which not only increasing the healthcare expenditure of the country but also, the out-of-pocket spending of the people and due to this factor, the discount medical plan market is expected to grow in the country as people want different healthcare facilities as per their budget and at lower cost. For instance, according to the 2021 Anesthesia Almanac report published by the American Society of Anesthesiologists, in 2019, the per capita healthcare expenditure in the United States have increased by 17% since 2015, by USD 9,930 in 2015 to USD 11,582 by 2019, which shows an increasing healthcare expenditure in the country, and to reduce their burden, the people are opting more and more for healthcare discount plans offered by different players in the country as these plans offers better and higher discounts as compared with conventional monthly premium insurance plans which are usually very high.

Furthermore, with the increasing healthcare cost for various services and treatment in the country, the demand for private health discount plans is increasing and to tap the opportunity, the Discount Medical Plan Organizations (DMPOs) present in the country are launching new plans or initiated offering greater discounts along with other initiatives such as collaborations, mergers and acquisitions and others, to offer affordable plans to wider population in the country which is further expected to have a significant impact on the growth of the healthcare discount plan market as these developments will increase the competition in the market which eventually will benefit the consumers and increase the adoption of the discount services and thus, the studied market will grow in the United States.

For instance, in March 2019, UnitedHealthcare invested USD 19 million to help improve the quality of care and patient services at California's federally qualified health centers, and the investment will be utilized for construction and improvement of several health centers in California which offers healthcare services to underserved communities in Santa Barbara, Solano and Santa Clara counties. However, presence of better alternative insurance plans offering better services and discounts is expected to restrain the growth of healthcare discount plan market in the United States over the forecast period of the study.

Key Market Trends

Dental Care Segment by Service Type is Expected to Hold a Significant Share in the Market

The dental care segment in the studied market is expected to occupy a significant market share in the studied market due to the high and increasing prevalence of dental diseases in the country which is increasing the healthcare cost of the individual or family, and to cut down the cost associated with dental services, the adoption of healthcare discount plans is expected to increase in the country and the segment will grow. For instance, according to the February 2022 update of the Center for Disease Control and Prevention, about 63% of the adults of age 18 years and more had a dental visit in 2020, while about 85.9% of children of age 2-17 years had a dental visit in 2018, which shows a high prevalence of dental diseases in the country.

Moreover, the growing competition in the market with the launch of new plans, collaborations bet organizations, mergers, and acquisitions are further expected to augment the growth of the dental care segment in the studied market. For instance, in February 2022, UnitedHealthcare Dental launched digital dental plans meant to assist people in improving their oral health and gaining better access to dental treatment in a more convenient and educated manner in collaboration with Quip Oral Care, and in this new plan, the virtual dental visits will be available round-o-clock, 24/7, to help members to meet with a licensed dentist by phone or video, and also, the members can get 30% discount on quip oral care products. Hence, due to high prevalence of dental diseases and cost associated with it, the adoption of discount health plans for dental care is expected to increase in the country, and dental care segment is anticipated to hold a significant share in the United States healthcare discount plan market during the forecast period of the study.

Competitive Landscape

Due to the rising healthcare expenditure in the country along with the out-of-pocket costs of healthcare services, the adoption of healthcare discount plans is expected to increase in the country and the studied market will grow, and, as there are a number of players present in the country offering healthcare discount plans, the studied market is highly competitive in the United States. Some of the key market players are United Health Group, New Benefits, Ltd., Access One Consumer Health, Inc., American Dental Care Partners, Inc., and CARRINGTON International Corporation, among others.

Additional Benefits:

  • The market estimate (ME) sheet in Excel format
  • 3 months of analyst support

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Table of Contents

1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
4.1 Market Overview
4.2 Market Drivers
4.2.1 Rising Healthcare Costs Owing to the Increasing Burden of Chronic Diseases
4.2.2 Growing Demand for Private Health Discount Plans and Launch of New Plans
4.3 Market Restraints
4.3.1 Presence of Alternative Insurance Plans
4.4 Porters 5 Force Analysis
4.4.1 Threat of New Entrants
4.4.2 Bargaining Power of Buyers/Consumers
4.4.3 Bargaining Power of Suppliers
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
5.1 By Service Type
5.1.1 Prescription Drugs
5.1.2 Dental Care
5.1.3 Vision Care
5.1.4 Hearing Aids
5.1.5 Chiropractic Care
5.1.6 Virtual Visits
5.1.7 Other Types
5.2 By Coverage Type
5.2.1 Individual
5.2.2 Family
5.2.3 Others
6.1 Company Profiles
6.1.1 United Health Group
6.1.2 New Benefits, Ltd.
6.1.3 Access One Consumer Health, Inc.
6.1.4 American Dental Care Partners, Inc.
6.1.5 Careington International Corporation
6.1.6 Ameriplan
6.1.7 Alliance Healthcard of Florida, Inc.
6.1.8 DentalPlans.com, Inc.(Internet Brands)
6.1.9 Humana
6.1.10 Cigna
6.1.11 Freshbenies
6.1.12 Discounts by Design

Companies Mentioned

A selection of companies mentioned in this report includes:

  • United Health Group
  • New Benefits, Ltd.
  • Access One Consumer Health, Inc.
  • American Dental Care Partners, Inc.
  • Careington International Corporation
  • Ameriplan
  • Alliance Healthcard of Florida, Inc.
  • DentalPlans.com, Inc.(Internet Brands)
  • Humana
  • Cigna
  • Freshbenies
  • Discounts by Design