Booster shot: The effects of the PPCA helped support significant revenue growth in the state

The provisions of the Patient Protection and Affordable Care Act (PPACA), including healthcare exchanges and Medicaid expansion, have greatly increased the number of people with private health insurance in California over the past five years. Consequently, the Health and Medical insurance industry in California has yielded significant revenue growth over the five years to 2017, further boosted by an increase in demand for healthcare services. However, this has also hindered industry profit. When people use their health insurance, insurers must pay healthcare providers for their services, increasing benefit expenditure paid out by operators...read more.

Industry Statistics & Market Size
Revenue
$178bn
Annual Growth 12-17
8.5%
Forecast Growth 17-22
Profit
Employment
54,237
Businesses
463
What Our Customers Say

Industry Threats & Opportunities

  • While increased demand for healthcare services has benefited industry revenue, it has also hindered industry profit
  • The number of people with private health insurance in California increased particularly drastically
  • Industry revenue will still be supported by rising health expenditure
  • Industry Report - Industry Investment Chapter

    In California, the Health and Medical Insurance industry has a moderate level of capital intensity. In 2017, industry operators are expected to spend $0.18 on capital for every dollar spent on labor. This is consistent with the national health insurance industry. Capital expenditure and labor are two of the industry's lowest costs. The industry's capital costs include the cost of insurance-claims software, office equipment and other small expenditures. These costs are the same for California operators and companies in the rest of the country. Wag...purchase to read more.

    Additional Insights for the Health & Medical Insurance in California Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Health & Medical Insurance in California Industry are

  • Financial strength
  • Must comply with government regulations
  • Development of new products
  • IBISWorld analysts also discuss how external factors such as Total Health Expenditure in California and Number of employees in the Health & Medical Insurance in California industry impact industry performance..

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    What is the Health & Medical Insurance in California Industry?

    This industry includes businesses that focus mostly on directly underwriting insurance policies relating to life, health, accident and medical risks. Underwriting insurance policies involves assuming risks and assigning premiums. Businesses within this industry generate revenue from the specific activity of insurance underwriting as well as through investing premiums. Investment revenue comprises income generated from investments as well as any realized gains or losses from asset sales.

    Industry Products
  • Pharmacy benefit management (PBM)
  • Preferred provider organization (PPO) plans
  • High-deductible health plans (HDHPs)
  • Health maintenance organization (HMO) plans
  • Point-of-service (POS) plans
  • Medicaid (via private companies)
  • Medicare (via private companies)
  • Industry Activities
  • Underwriting annuities and life insurance policies.
  • Underwriting accidental death and dismemberment insurance policies.
  • Underwriting health and medical insurance policies.
  • Underwriting disability income insurance policies.
  • Investing insurance premiums earned through taking on risk.
  • Similar Industries
  • Reinsurance Carriers
  • Health & Welfare Funds
  • Workers' Compensation & Other Insurance Funds
  • Emergency & Other Outpatient Care Centers
  • Life Insurance & Annuities in California
  • Property, Casualty & Direct Insurance in California
  • Life Insurance & Annuities in New York
  • Health & Medical Insurance in New York
  • Property, Casualty & Direct Insurance in New York
  • Property, Casualty and Direct Insurance in Illinois
  • Life Insurance & Annuities in Illinois
  • Health & Medical Insurance in Illinois
  • Property, Casualty and Direct Insurance in Texas
  • Property, Casualty and Direct Insurance in Florida
  • Health & Medical Insurance in Florida
  • Property, Casualty and Direct Insurance in Massachusetts
  • Life Insurance & Annuities in Massachusetts
  • Health & Medical Insurance in Massachusetts
  • Property, Casualty and Direct Insurance in Ohio
  • Health & Medical Insurance in Ohio
  • Property, Casualty and Direct Insurance in Pennsylvania
  • Life Insurance & Annuities in Pennsylvania
  • Health & Medical Insurance in Pennsylvania
  • Property, Casualty and Direct Insurance in New Jersey
  • Life Insurance & Annuities in New Jersey
  • Health & Medical Insurance in New Jersey
  • Property, Casualty and Direct Insurance in Georgia
  • Life Insurance & Annuities in Georgia
  • Health & Medical Insurance in Georgia
  • Property, Casualty and Direct Insurance in Michigan
  • Life Insurance & Annuities in Michigan
  • Health & Medical Insurance in Michigan
  • Property, Casualty and Direct Insurance in Wisconsin
  • Life Insurance & Annuities in Wisconsin
  • Health & Medical Insurance in Wisconsin
  • Property, Casualty and Direct Insurance in Washington
  • Life Insurance & Annuities in Washington
  • Health & Medical Insurance in Washington
  • Property, Casualty and Direct Insurance in Virginia
  • Life Insurance & Annuities in Virginia
  • Health & Medical Insurance in Virginia
  • Property, Casualty and Direct Insurance in Tennessee
  • Life Insurance & Annuities in Tennessee
  • Health & Medical Insurance in Tennessee
  • Property, Casualty and Direct Insurance in Missouri
  • Life Insurance & Annuities in Missouri
  • Property, Casualty and Direct Insurance in North Carolina
  • Life Insurance & Annuities in North Carolina
  • Health & Medical Insurance in North Carolina
  • Property, Casualty and Direct Insurance in Minnesota
  • Life Insurance & Annuities in Minnesota
  • Health & Medical Insurance in Minnesota
  • Property, Casualty and Direct Insurance in Maryland
  • Life Insurance & Annuities in Maryland
  • Health & Medical Insurance in Maryland
  • Property, Casualty and Direct Insurance in Colorado
  • Life Insurance & Annuities in Colorado
  • Health & Medical Insurance in Colorado
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Total Health Expenditure in California
  • Number of employees
  • Median age of population
  • Number of physician visits
  • Per Capita Disposable Income in California

  • Current Performance
  • Healthcare reform
  • Falling profit
  • Chart: Revenue Growth

  • Industry Outlook
  • Demand
  • Profit changes
  • Regulatory uncertainty
  • Table: Health & Medical Insurance in California Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Health & Medical Insurance in California Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Health & Welfare Funds
  • Consumers

  • Key Selling Industries
  • Insurance Brokers & Agencies
  • Reinsurance Carriers
  • Third-Party Administrators & Insurance Claims Adjusters

  • Products & Services
  • Pharmacy benefit management (PBM)
  • Medicaid (via private companies)
  • Preferred provider organization (PPO) plans
  • Health maintenance organization (HMO) plans
  • High-deductible health plans (HDHPs)
  • Medicare (via private companies)
  • Point-of-service (POS) plans
  • Chart: Health & Medical Insurance in California Industry Products and Services Segmentation

  • Major Markets
  • Consumers with employer-sponsored health insurance
  • Consumers with Medicaid
  • Consumers with Medicare
  • Consumers with direct-purchased health insurance
  • Consumers with other insurance plans
  • Chart: Major Market Segmentation for the Health & Medical Insurance in California Industry

  • Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Healthcare benefit expenses
  • Wages
  • Operating and other expenses
  • Chart: Cost Structure Benchmarking – Sector vs Health & Medical Insurance in California

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Health & Medical Insurance in California Industry

  • Kaiser PermanenteAnthem Inc.Blue Shield of California Life & Health Insurance CompanyHealth Net Inc.UnitedHealth Group Inc.Aetna Inc. Cigna Corporation
  • Table: Kaiser Permanente - financial performance
  • Table: Anthem Inc. - financial performance
  • Table: Blue Shield of California Life & Health Insurance Company - financial performance
  • Table: Health Net Inc. - financial performance
  • Table: UnitedHealth Group Inc. - financial performance
  • Table: Aetna Inc. - financial performance
  • Table: Cigna Corporation - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Health & Medical Insurance in California Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Health & Medical Insurance in California Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Total Health Expenditure in California (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Beneficiaries
  • Are the persons named in a life insurance policy as the receipts of policy payments.
  • Density
  • Is a measure of the per capita expenditure on a particular good or service. In the case of life insurance it is per capita expenditure on life insurance policies.
  • Insurety
  • Is a measure of the adequacy of insurance coverage relative to the risks faced. Under-insurety is the term used to indicate the general existence of inadequate insurance coverage.
  • Penetration
  • Refers to the aggregate expenditure on a good or service as a percentage of GDP. In the case of life insurance, it is life insurance premiums as a percentage of GDP.
  • Policy Payment
  • Refers to the money paid to the beneficiaries of a life insurance policy when the insured life event occurs.
  • Term Policies
  • Provide a predetermined lump sum payment upon the occurrence of the insured event during a specified period of time.
  • Why buy this report?

    IBISWorld’s industry research report on Health & Medical Insurance in California contains five-year forecasts and data analysis that can help you identify and mitigate risks in potential new markets. Position yourself as an expert with internal stakeholders by using our comprehensive industry research to inform your reports, proposals and presentations. Our business information will save you money by helping you make better decisions, faster.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
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    This report on Health & Medical Insurance in California:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Health & Medical Insurance in California market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Health & Medical Insurance in California, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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