The U.S. group health insurance market size was estimated at USD 1,345 billion in 2022 and is expected to expand at a compound annual growth rate (CAGR) of 2.3% from 2023 to 2030. The increasing demand for group health insurance, known as employer-sponsored insurance, and its rising average premium price has led to a spectacular development of the U.S. group health insurance market. Furthermore, rising internet usage and digitalization positively influence the overall U.S. market. In 2020, the COVID-19 pandemic decreased employment and negatively impacted employer-sponsored insurance. For instance, according to September 2022 article from the American Medical Association (JAWA Network), employer-sponsored insurance (ESI) enrollment decreased by 7,23,796 members during the COVID-19 pandemic and did not return to pre-COVID levels by mid-2021.

Furthermore, according to KFF's Employer Health Benefits Survey 2022 report, as the situation of uncertainties post-COVID-19 pandemic continues to arise - inflation has increased to 8% in 2022 while worker wages have increased by 6.7%. However, these changes have no direct effect on the premium in 2022, where the average annual premiums for employer-sponsored health insurance are USD 7,911 for single coverage and USD 22,463 for family coverage, respectively. These amounts are relatively similar to the premium in 2021. 

While many of the 2022 premium were decided upon in the fall of 2021, before the degree of price rises was apparent, this shows that the growing inflation and worker earnings did not directly influence the group health insurance premiums in 2022. In addition, it is anticipated that average premiums would rise in 2023 as long as inflation maintains above-normal levels, which will have a limited impact on market expansion. 

The rising premium cost of group health insurance has been a crucial metric for insurance companies. According to KFF's Employer Health Benefits Survey report for 2021 and 2022, these premium costs are rising yearly.  The table below shows the average annual premium for single and family coverage.

Detailed Segmentation:

Plan Type Insights

Based on plan type, the market is segmented into five types - health maintenance organization (HMO), preferred provider organization (PPO), point of service (POS) plans, high-deductible plan with a savings option (HDHP/SO), and conventional (also known as indemnity plan).

By Firm Size Insights

Based on firm size, the market is segmented into two types - small (employee size less than 199 or equal to 199) and large (employee size more than 200) firms. The large firm segment dominated the market in 2022 and is expected to maintain its dominance throughout the forecast period.

Regional And State Insights

The South region held the largest share of the U.S. market in 2022 due to the presence of noteworthy insurance plans and the substantial population covered by overall group health insurance.

List of Key Players of U.S. Group Health Insurance Market

Some prominent players in the U.S. group health insurance market include:

• Health Care Service Corporation
• Unitedhealth Group
• Kaiser Foundation Health Plan, Inc.
• Blue Cross Blue Shield Association
• Anthem, Inc. (Now Elevance Health)
• The IHC Group
• Health Partners Group Ltd
• Mississippi Insurance Group, LLC
• Providence Health Plan
• Harvard Pilgrim Health Care, Inc.

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