The number of privately insured people will rise, supporting demand for industry services.
New York, NY (PRWEB) December 13, 2014
After a double-digit drop in 2009, revenue for the Medical Claims Processing Services industry is projected to grow at an average annual 3.8% to $2.1 billion over the five years to 2014 (forecast period ends December 31, 2014). Improving economic conditions have brought down the unemployment rate, increasing Americans' access to private employer-sponsored health insurance. In addition, the aging population has increased the number of patients who are eligible for Medicare, a government-sponsored health insurance program. “Older individuals are more likely to suffer from chronic illnesses and other health problems and are therefore more apt to use medical care that requires industry services,” according to IBISWorld Industry Analyst Leah Goddard. Furthermore, healthcare reform that was passed under the Patient Protection and Affordable Care Act (PPACA) in 2010 has extended coverage to previously uninsured patients, driving growth in doctors' visits. IBISWorld expects the healthcare reform law, which created health insurance exchanges that came online in 2014, to help propel revenue 3.2% over the year.
Rising demand for medical claims processing services has attracted new entrants to the industry. “Despite consolidation in the early part of the period, companies have expanded operations in recent years to meet rising demand,” says Goddard. Over the five years to 2014, the number of industry enterprises is projected to grow at an average annual rate of 1.1% to 5,084 operators (forecast period ends December 31, 2014). However, this trend has heightened competition between industry participants, putting downward pressure on industry profitability.
The Medical Claims Processing Services industry will continue to benefit from higher health expenditure in coming years. As the unemployment rate declines, more Americans will be covered by private employer-sponsored health insurance. Meanwhile, the expanding senior population will create demand via Medicare. In addition, the PPACA will continue to extend health insurance coverage to more Americans, including patients with preexisting conditions.
For more information, visit IBISWorld’s Medical Claims Processing Services in the US industry report page.
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IBISWorld industry Report Key Topics
This industry processes and administers medical insurance policies and claims. Businesses help doctors and other healthcare providers collect payments from insurance companies and Medicare.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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