PUBLISHER: Grand View Research | PRODUCT CODE: 1751248
PUBLISHER: Grand View Research | PRODUCT CODE: 1751248
The U.S. group health insurance market size is expected to reach USD 1.61 trillion by 2030, registering a CAGR of 2.2% from 2025 to 2030, according to a new report by Grand View Research, Inc. The availability of group health insurance enables the advantage for companies with an advantage in the hiring phases that aids in retaining qualified personnel, and increases engagement and productivity at work as a whole. According to statistics from the Kaiser Family Foundation's Health Insurance Coverage of the Total Population data for 2021, 48.5% of Americans rely on a group health plan chosen by their employer for insurance coverage, showcasing the high demand for group health insurance.
In 2022, the South area owned the biggest proportion of the U.S. market, followed by the Midwest region. This is due to the presence of prominent insurance plans and a sizable population with standard group health insurance. Florida State has the largest revenue share for the South in 2022, while Illinois has a sizable revenue share supporting the Midwest region. Additionally, the market is aided by the growing popularity of Preferred Provider Organization (PPO), High-Deductible Health Plans with a Savings Option (HDHP/SO) plans. According to the Employer Health Benefits 2022 Annual Survey Report from the Kaiser Family Foundation (KFF), the PPO and HDHP/SO plans accounted for 49% and 29% of covered workers' enrolment in 2022, reflecting the rising demand for these plans.
The U.S. market for group health insurance is affected to some extent by the overall consolidation of the healthcare sector. For instance, at the start of 2020, Cigna and Oscar collaborated to sell health insurance policies to small businesses. The plans use member-focused technologies from Oscar and the regional and national provider networks of Cigna. As a result, Cigna and Oscar are able to provide small group health insurance across the nation in more than a dozen of the most important areas, including Kansas City, Georgia, Connecticut, Tennessee, and Arizona.