Healthcare Payer Services Market

Global Healthcare Payer Services Market Size (2023 to 2028)

The size of the global healthcare payer services market is forecasted to be growing at a CAGR of 12.22% from 2023 to 2028 and be worth USD 3.47 billion by 2028 from USD 1.95 billion in 2023.

The COVID-19 pandemic has moderately impacted the healthcare payer services market. During the pandemic, many health insurers improved their financial performance because of a reduction in healthcare funding. In addition, web portals have been created to provide rapid and accurate information about the pandemic so that patients can retain health services, provide advance payments, and set up several community programs for health equity. Nevertheless, the healthcare system has been disrupted due to the COVID-19 pandemic. The payers in the market can expect help from outsourcing partners who have a record of increasing efficiency in claim operations, provider network management, medical document management, fraud control, and all other applications. In addition, the COVID-19 pandemic's rise in demand for health insurance in developing nations and patients' increased knowledge of health insurance is anticipated to promote the market's expansion for healthcare payer solutions.

MARKET DRIVERS:

The rising incidence of chronic diseases and increasing insurance coverage among people are majorly boosting the growth of the healthcare payer services market.

The rise in chronic diseases drives the market forward due to the awareness of health insurance. For example, in 2021, diabetes will affect around 537 million persons aged 20 to 79, according to the International Diabetic Federation. The complete count of diabetics is expected to reach 645 million by 2030, and by 2045, it will reach 784 million. Furthermore, according to Globocan 2020, there were 19,292,789 new cancer cases seen in 2020 across the globe, and 9,958,133 deaths were reported globally in 2020. As a result, the considerable burden of chronic diseases will lead to increased adoption of ethical medication, driving the market growth significantly.

Rising insurance coverage is another factor driving the market for healthcare payer services. Nearly 91.5% of the U.S. population had health insurance for everyone in 2020, as per the United States Census Bureau. Developing countries like India are also anticipated to witness increased health insurance coverage due to favorable government policies. For example, the FDI limit in insurance was raised from 49 to 74 percent as part of the Union Budget of 2021, and state-owned general insurance companies invested $413.19 million to improve their financial health.

Growing numbers of people registering in insurance, increased use of customer services as a result of the adoption of cost-effective healthcare payer solutions, raising awareness of insurance, and development of health benefit plan designs are further anticipated to be boosting the healthcare payer services market. Rising numbers of healthcare frauds, the rising cost of healthcare, an in-house shortage of skilled personnel, increasing technological advancements and increased acceptance of analytics in healthcare, as well as an increasing number of people opting for healthcare insurance, increase in adoption of A.I. & analytics, increase in the use of healthcare I.T. solutions and implementation of various healthcare reforms fuel the growth of the healthcare payer services market in the coming years. Healthcare payer solutions help manage costs and provide better results by interacting with the providers, thereby positively impacting the market. Associated benefits such as better care coordination, network management, risk analysis, and affordability, among others, are anticipated to boost the market's growth during the forecast period.

MARKET RESTRAINTS:

The unanticipated expenses of outsourcing and the loss of management control in outsourced projects limit the expansion of the healthcare payer services market. In addition, migration from legacy systems, the surge in data breaches and, loss of confidentiality, and cultural & language barriers pose a significant challenge for the market.

REPORT COVERAGE:

This report on the global healthcare payer services market has been segmented and sub-segmented into the following categories.

Healthcare Payer Services Market - By Service Type:

• BPO Services
• ITO Services
• KPO Services

Due to the rising need for highly qualified workers and the economic benefit of outsourcing complex processes to emerging nations, the KPO segment is anticipated to have the largest share in the global healthcare payer services market during the forecast period. In addition, the rising need for low-cost, highly skilled labor for the payer vertical's core and non-core activities in emerging nations is anticipated to fuel the growth rate of the healthcare payer services market.

Healthcare Payer Services Market - By Application:

• Claims Management Services
• Integrated Front Office Service and Back-Office Operations
• Member Management Services
• Provider Management Services
• Analytics and Fraud 

Based on the application, the management services and claims processing services segments are anticipated to grow at a healthy CAGR during the forecast period. The management services and claims processing services are the most data-intensive processes. The providers' claims are verified for eligibility rules, authenticity, and the precise amount that needs to be reimbursed. The process has been made more straightforward, and turnaround times have significantly increased due to the advent of the digital era. In October 2021, Blue Shield of California and Google Cloud collaborated and allied to develop a new method of paying providers that will manage member claims in real time.

Healthcare Payer Services Market – By End-User:

• Private Payers
• Public Payers

Based on the end-user, the private payers segment had the most significant share in the global healthcare payer services market in 2022. The dominance of this segment is primarily driven by the rising healthcare costs, rising private investment in the healthcare payer, the Affordable Care Act, HIPAA, and ICD-10, as well as foreign health insurance legislation such as increasing public support for encouraging investment in the healthcare sector.

Healthcare Payer Services Market – By Region:

• North America
• Europe
• Asia-Pacific
• Middle East Africa
• Latin America

North America dominated the market for healthcare payer services worldwide in 2022 owing to the growing demand for healthcare IT services, increasing pressure on the healthcare industries to decrease benefits, stringent government regulations, rising implementation of ICD-10 codes in the U.S., and the presence of a skilled workforce to provide high services, a company of larges vital players and increased demand for healthcare payer solutions. According to the United States Centres for Medicaid Medicare and Services, In December 2021, the COVID-19 epidemic influenced many parts of the country, totaling a 9.7% increase in national healthcare spending to USD 4.1 trillion. In addition, the high investments by national healthcare will lead to higher adoption of healthcare payer services, driving the market growth.

The Asia Pacific will hold a significant share of the global healthcare payer services market during the forecast period. This dominance is due to the increasing prevalence of chronic diseases, rising healthcare expenditure, and rising demand for resources in developing countries like China and India. In addition, the constantly increasing healthcare sector fuels the expansion of the market for healthcare payer solutions in developing nations like China and India.

Many European Countries, such as the Czech Republic, Denmark, Finland, and Ireland, will have 100% Government social health insurance in 2020, according to the Organisation for Economic Co-operation and Development statistics updated in May. Due to the adoption of healthcare payer services, the government's providing health insurance to its citizens would drive the market.

TOP COMPANIES IN THIS MARKET:

Cognizant Technical Solutions, Concentrix Corporation, Accenture PLC, HCL Technologies Ltd, Xerox Corporation, Wipro Ltd, Hinduja Global Solutions Ltd, Exlservice Holdings Inc., Teleperformance Group, and Sutherland Global Services are some of the notable players in the global healthcare payer services market profiled in this report.

RECENT HAPPENINGS IN THIS MARKET:

• In 2022, IMAT Solutions, a leader in delivering innovative, real-time healthcare data management, has launched a new offering that addresses the collection, aggregation, distribution, and reporting of healthcare data.
• Icertis released an advanced contract intelligence solution for healthcare providers in 2022.