US Healthcare Discount Plan Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 11.30 % |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
US Healthcare Discount Plan Market Analysis
The United States healthcare discount plan market is expected to register a CAGR of 11.3% during the forecast period of the study (2022-2027).
The emergence of the COVID-19 pandemic severely impacted the healthcare system of the country, as the United States recorded one of the highest numbers of COVID-19 cases and deaths globally. Due to the lockdown restrictions and other limitations, initially, healthcare services other than COVID-19 were impacted in the country. For instance, according to a research study published by David Blumenthal et al., in October 2020, due to the pandemic, there were unprecedented changes in the demand for health services, and in the first months of the crisis, office-based practices saw a 60% drop in visitors' numbers which had its impact on the studied market. However, as the United States was one of the most severely affected countries by COVID-19, the demand for healthcare services and prescriptions increased after the initial decline, and thus, the studied market is expected to grow with the increasing demand for the healthcare services in the country.
Chronic diseases such as cardiovascular diseases, cancer, and musculoskeletal disorders, among many others, are highly prevalent in the United States, which not only increasing the healthcare expenditure of the country but also the out-of-pocket spending of the people, and due to this factor, the discount medical plan market is expected to grow in the country as people want different healthcare facilities as per their budget and at a lower cost.
For instance, according to the Centers for Medicare & Medicaid Services (CMS), the health expenditure of the United States is increasing every year, and it was about USD 4.1 trillion in 2020 which is expected to reach USD 6.2 trillion by 2028. Also, as per the National Health Expenditure data for 2021, the out-of-pocket healthcare spending in the United States increased from USD 386.5 billion in 2018 to USD 388.6 billion in 2020 and it is still increasing every year. This data shows an increasing healthcare expenditure in the country, and to reduce their burden, people are opting more and more for healthcare discount plans offered by different players in the country as these plans offer better and higher discounts as compared with conventional monthly premium insurance plans which are usually very high.
Furthermore, with the increasing healthcare cost for various services and treatments in the country, the demand for private health discount plans is increasing, and tapping the opportunity, the Discount Medical Plan Organizations (DMPOs) present in the country are launching new plans or initiating offering greater discounts along with other initiatives such as collaborations, mergers and acquisitions, and others, to offer affordable plans to a wider population in the country which is further expected to have a significant impact on the growth of the healthcare discount plan market as these developments will increase the competition in the market which eventually will benefit the consumers and increase the adoption of the discount services and thus, the studied market will grow in the United States. However, the presence of better alternative insurance plans offering better services and discounts is expected to restrain the growth of the healthcare discount plan market in the United States over the forecast period of the study.
US Healthcare Discount Plan Market Trends
This section covers the major market trends shaping the US Healthcare Discount Plan Market according to our research experts:
Dental Care Segment by Service Type is Expected to Hold a Significant Share in the Market
The dental care segment in the studied market is expected to occupy a significant market share in the studied market due to the high and increasing prevalence of dental diseases in the country, which is increasing the healthcare cost of the individual or family, and cutting down the cost associated with dental services, the adoption of healthcare discount plans is expected to increase in the country, and the segment will grow. For instance, according to the February 2022 update of the Center for Disease Control and Prevention, about 63% of the adults of age 18 years and more had a dental visit in 2020, while about 85.9% of children of age 2-17 years had a dental visit in 2018, which shows a high prevalence of dental diseases in the country.
Moreover, the growing competition in the market with the launch of new plans, collaborations bet organizations, mergers, and acquisitions are further expected to augment the growth of the dental care segment in the studied market. For instance, in February 2022, UnitedHealthcare Dental launched digital dental plans meant to assist people in improving their oral health and gaining better access to dental treatment in a more convenient and educated manner in collaboration with Quip Oral Care and in this new plan, the virtual dental visits will be available round-o-clock, 24/7, to help members to meet with a licensed dentist by phone or video, and also, the members can get 30% discount on quip oral care products. Hence, due to the high prevalence of dental diseases and the cost associated with them, the adoption of discount health plans for dental care is expected to increase in the country, and the dental care segment is anticipated to hold a significant share in the United States healthcare discount plan market during the forecast period of the study.
US Healthcare Discount Plan Industry Overview
Due to the rising healthcare expenditure in the country along with the out-of-pocket costs of healthcare services, the adoption of healthcare discount plans is expected to increase in the country, and the studied market will grow, as there are a number of players present in the country offering healthcare discount plans, the studied market is highly competitive in the United States. Some of the key market players are United Health Group, New Benefits, Ltd., Access One Consumer Health, Inc., American Dental Care Partners, Inc., and CARRINGTON International Corporation, among others.
US Healthcare Discount Plan Market Leaders
United Health Group
New Benefits, Ltd.
Access One Consumer Health, Inc.
American Dental Care Partners, Inc.
Careington International Corporation
*Disclaimer: Major Players sorted in no particular order
US Healthcare Discount Plan Market News
- In January 2022, the dental subscription platform, Membersy launched a direct-to-consumer (D2C) marketplace called membersy Marketplace for licensed dental membership plans which are provided by different Dental Service Organizations (DSOs) in the country.
- In December 2021, UnitedHealthcare Community Plan of California revealed a plan to invest USD 1.5 million in community-based programs in San Diego with the goal of reducing health disparities and improving health equity.
US Healthcare Discount Plan Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.2.1 Rising Healthcare Costs Owing to the Increasing Burden of Chronic Diseases
4.2.2 Growing Demand for Private Health Discount Plans and Launch of New Plans
4.3 Market Restraints
4.3.1 Presence of Alternative Insurance Plans
4.4 Porter's Five Forces Analysis
4.4.1 Threat of New Entrants
4.4.2 Bargaining Power of Buyers/Consumers
4.4.3 Bargaining Power of Suppliers
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 By Service Type
5.1.1 Prescription Drugs
5.1.2 Dental Care
5.1.3 Vision Care
5.1.4 Hearing Aids
5.1.5 Chiropractic Care
5.1.6 Virtual Visits
5.1.7 Other Types
5.2 By Coverage Type
5.2.1 Individual
5.2.2 Family
5.2.3 Others
6. COMPETITIVE LANDSCAPE
6.1 Company Profiles
6.1.1 United Health Group
6.1.2 New Benefits, Ltd.
6.1.3 Access One Consumer Health, Inc.
6.1.4 American Dental Care Partners, Inc.
6.1.5 Careington International Corporation
6.1.6 Ameriplan
6.1.7 Alliance Healthcard of Florida, Inc.
6.1.8 DentalPlans.com, Inc.(Internet Brands)
6.1.9 Humana
6.1.10 Cigna
6.1.11 Freshbenies
6.1.12 Discounts by Design
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
US Healthcare Discount Plan Industry Segmentation
A discount medical plan is a plan that provides discounts on healthcare services, allowing people and their dependents to save money on services that are not properly covered under their healthcare coverage or insurance.
The United States healthcare discount plan market is segmented by service type (prescription drugs, dental care, vision care, hearing aids, chiropractic care, virtual visits, and other types) and coverage type (individual, family, and others). The report offers the value (in USD million) for the above segments.
| By Service Type | |
| Prescription Drugs | |
| Dental Care | |
| Vision Care | |
| Hearing Aids | |
| Chiropractic Care | |
| Virtual Visits | |
| Other Types |
| By Coverage Type | |
| Individual | |
| Family | |
| Others |
US Healthcare Discount Plan Market Research FAQs
What is the current United States Healthcare Discount Plan Market size?
The United States Healthcare Discount Plan Market is projected to register a CAGR of 11.30% during the forecast period (2024-2029)
Who are the key players in United States Healthcare Discount Plan Market?
United Health Group, New Benefits, Ltd., Access One Consumer Health, Inc., American Dental Care Partners, Inc. and Careington International Corporation are the major companies operating in the United States Healthcare Discount Plan Market.
What years does this United States Healthcare Discount Plan Market cover?
The report covers the United States Healthcare Discount Plan Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the United States Healthcare Discount Plan Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
United States Healthcare Discount Plan Industry Report
Statistics for the 2024 United States Healthcare Discount Plan market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. United States Healthcare Discount Plan analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
