Healthcare Payer BPO Market Size, Share, Growth, Trends and Forecast Report
by Susan Hill Business ConsultantGlobal healthcare payer BPO market is expected to reach
over USD 34.2 billion by 2022 according to a new report by Grand View Research
Inc. Key drivers attributing to the growth are ObamaCare, shift to ICD-10
coding system, growing geriatric population, increasing disease burden and
penetration of insurance coverage in emerging economies.
In 2013, as
per estimates published by the America’s Health Insurance Plans (AHIP), which
is the national trade association representing the health insurance industry,
one-sixth of the U.S. economy or nearly USD 2.7 trillion is dedicated to
healthcare spending and the number is expected to increase year on year.
However, the healthcare system is not able to reap the benefits of such
expenditure due to process inefficiencies and use of redundant systems. The
estimated loss due to such inefficiencies is nearly 800 billion or
approximately 20 to 30 percent of the overall expenditure.
Increasing
healthcare expenditure is a major concern for the U.S. and all the other major
economies. In order to reduce the economic burden and provide universal access
to healthcare, governments are encouraging outsourcing of payer services to
onshore or offshore locations.
The shift
from ICD-9 coding system to ICD-10 coding has created huge work load for the
payers to upgrade their systems, train their staff and has significantly
increased the financial burden. The ICD-9 code system had 13,000 codes, whereas
the ICD-10 code system has nearly 68,000 codes. This shift from the legacy
system to the latest system has significantly increased the need for medical
coding, accounting, HR, and other technical professionals, thereby is
expected to positively reinforce the healthcare payer BPO outsourcing market
growth in the next seven years.
Further key
findings from the study suggest:
- In 2014, claims
processing services accounted for the maximum share of approximately 55%.
Key reasons attributed are growth in new member enrolments due to
ObamaCare, increase in disease burden. For instance, as per data published
by ObamaCare and CMS, in 2013 nearly 8 million people enrolled through the
marketplace and nearly 11.7 million people were enrolled in 2015.
- However, Asia
Pacific is expected to be the fastest growing market over the forecast
period owing to high economic development in the region, favorable
government initiatives and growth in insurance penetration across urban
and rural centers. For instance, the Indian government’s initiatives such
as Pradhan Mantri Suraksha Bima Yojana and Pradhan Mantri Jeevan Jyoti
Bima Yojana, are expected to benefit millions of people seeking life
insurance and personal accident coverage and as consequence is expected to
contribute to the healthcare payer BPO market expansion over the forecast
period.
- Some key
players operating in the market include, Xerox Corporation, Genpact
Limited, Wipro Limited, Capgemini, Hinduja Global Solutions, HCL
Technologies Ltd, Cognizant Technology Solutions, EXLService Holdings
Inc., and Accenture. These players dominate the market owing to their
strong product and service delivery portfolio, and presence of large
customer base in the U.S and European markets.
Access full
research report on global healthcare payer BPO market:
www.grandviewresearch.com/industry-analysis/healthcare-payer-bpo-market
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Created on Sep 17th 2019 08:11. Viewed 415 times.