Steady Growth Forecast for Health Insurance Exchange I.T. Market
The global health insurance exchange (HIX) IT market, estimated $1,609 million in 2013, is expected to grow at a compound annual growth rate (CAGR) 10.5 percent in the next five years, with the U.S. market showing the greatest growth potential over the next five years, according to Reportlinker.com.
According to the report, private exchanges are expected to register the fastest growth rate among the HIX market by exchange type during the forecast period. It attributes that growth to a shift by large employers towards private exchanges to reduce health benefits administration costs and provide their employees with multiple plan options. Within private exchanges, multi-carrier exchanges primarily sponsored by third-party administrators such as brokers or benefits consultants are expected to grow at the highest CAGR during the forecast period.
High-growth market segments in the HIX IT market include the operations and maintenance segment, which is expected to grow at a highest CAGR during the forecast period. The factors contributing to its growth include ongoing operation costs for public as well as private exchanges post-implementation. The HIX services market is also projected to register a double-digit growth in the next five years, driven by the shift toward cloud-based services.
