U.S. Employee-sponsored Healthcare Market Size

U.S. Employee-sponsored Healthcare Market Size

U.S. Employee-sponsored Healthcare Market was valued at USD 586.7 billion in 2023 and is expected to exhibit growth at a CAGR of 3% from 2024 – 2032 period. Increased availability of telehealth services, employer’s desire to attract and retain talent and growing awareness of health and wellness are among the key attributes anticipated to spur the market growth over the forecast period.

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Employers are increasingly investing in health plans that include preventive care and chronic disease management to keep employees healthy and reduce long-term healthcare costs. Healthier employees are more productive and have lower absenteeism rates. For instance, according to the data published by Centers for Disease Control and Prevention (CDC) in 2021, productivity losses linked to absenteeism cost employers USD 225.8 billion annually or USD 1,685 per employee in the U.S. Additionally, employees are seeking more comprehensive benefits packages. A survey by the Society for Human Resource Management (SHRM) found that 95% of employees rated health insurance as the most important benefit.

Moreover, wellness programs are becoming a staple of employee benefits. A 2021 report by the Kaiser Family Foundation noted that 53% of small firms and 81% of large firms that offer health benefits also provide at least one wellness program. Wellness programs contribute to overall health and can include activities like smoking cessation, weight management, and fitness programs, which can lead to reduced healthcare costs and improved employee health.

Employee-sponsored healthcare refers to health insurance plans provided by employers to their employees as part of a benefits package. These plans can cover a range of medical services, including preventive care, hospitalization, prescription drugs, and wellness programs.