Healthcare Insurance Industry Growth, Development and Future Scope

The healthcare industry is among the most prominent industries; however, the cost of private healthcare services is extremely high and most of the people are not able to afford those services. Attributed to this, private healthcare insurance companies provide several kinds of plans for disease, medical, and income protection. Customers have to pay tax-free premiums annually or monthly for such a service. The medical insurance is health insurance policy which covers high deductible medical expenses. The policy covers limited amounts of certain expenses, including emergency services, hospital bed expenses, and ambulatory patient services. 

The medical insurance also covers benefits such as prescription drugs, laboratory services, hospitalization, mental health and substance use disorder services, and paediatric services. Disease insurance provides coverage and benefits for specific diseases including kidney failure, heart attack, paralysis, cancer, coma, and sclerosis. The insurance offers per medical service expenses incurred per day and various benefits in case any medical event occurs or diagnosis related to the treatment of a condition. Income protection offers protection against a regular replacement of income when a policyholder is not able to work due to illness or injury. Income protection policy doesn’t always cover pre-existing conditions and usually covers a maximum percentage of tax-free salary. 

The private healthcare insurance industry in the U.S. is being driven by the rising prevalence of chronic diseases, government funding programs for healthcare insurance, and increasing geriatric population. As per the Population Reference Bureau report “Aging in the United States”, the number of people aged 65 years and above in America is expected to increase from 46 million in 2016 to more than 98 million by 2060. Since aged people need medical attention more often, it leads to frequent visits to clinics and hospitals, thereby increasing the burden of medical bills. Ascribed to this, people in this age group tend to increasingly invest in health insurance for lowering the burden of medical expenses. 

In the European region, the private healthcare insurance sector is registering growth in Switzerland, the U.K., Spain, Italy, and Germany, which is ascribed to the surging geriatric population, increasing healthcare expenditure, rising gross domestic product, and growing incidence of chronic diseases in the region. The medical cost in these countries often become incredibly high for individuals to handle, which is why healthcare insurance companies provide great benefits, often separate coverage for chronic diseases, to reduce the load of medical burden on people. 

The Asia-Pacific region is expected to emerge as the fastest growing private healthcare insurance industry in the coming years, and countries including Australia, India, Japan, and China are expected to majorly contribute to the industry. This is owing to the expansion of healthcare insurance industry, growing healthcare awareness, and increasing incidence of chronic ailments in the region. In addition to this, the the growing medical tourism in the region is also resulting in the growth of the private healthcare insurance in the region. 

In conclusion, the surging prevalence of chronic diseases and growing geriatric population is leading to the rising adoption of healthcare insurance. 

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