Insufficient funds: Despite anticipated revenue growth, an increase in healthcare expenditures will hamper profit

In the five years to 2016, industry revenue is expected to decrease as a consistent increase in healthcare expenditures (i.e. medical cost inflation) forced industry operators to consistently raise premiums and increase reserves to ensure healthcare liabilities are properly funded. This occurrence, combined with a relatively weak and volatile stock market, has also taken its toll on industry profit margins. In attempt to slow rising medical costs, the Obama administration has introduced healthcare reforms in the Affordable Care Act (ACA) in an attempt to temper medical cost inflation and decrease the uninsured rate in the United States...read more.

Industry Statistics & Market Size
Revenue
$189bn
Annual Growth 11-16
-2.0%
Forecast Growth 16-21
Profit
Employment
11,838
Businesses
866
Market Share of Companies
There are no companies with a dominant market share in this industry
What Our Customers Say

Industry Threats & Opportunities

  • An increase in overall health spending will drive the industry’s growth
  • The industry remained stable because there is great demand for skilled fund managers
  • Growth trends relate to the growing aging US population and increasing demand for Medicare
  • Industry Report - Industry Analysis Chapter

    The traditional definition of revenue does not apply to this industry. For the purposes of this report, revenue comprises employee and employer contributions, investment, interest and dividend income, and proceeds from the sale of assets. A traditionally organized health and welfare fund is financed through a fixed monthly or annual contribution made by employees, which does not form a significant part of the total value of the fund. Additional funding comes from employer contributions and the fund is overseen by a board of trustees and is generally managed by fund managers. Companies and labor unions can have in-house fund managers or can hire investment management companies such as Fidelity or Vanguard to manage their funds. As ...purchase to read more.

    Additional Insights for the Health & Welfare Funds Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Health & Welfare Funds Industry are

  • Effective cost controls
  • Ensuring pricing policy is appropriate
  • Financial position of the company (as against financial structure)
  • IBISWorld analysts also discuss how external factors such as S&P 500 and Number of employees in the Health & Welfare Funds industry impact industry performance..

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    What is the Health & Welfare Funds Industry?

    This industry comprises legal entities (i.e. funds, plans and programs) that provide medical, surgical, hospital, vacation, training and other health and welfare related employee benefits, exclusively for the sponsor’s employees or members. Unlike private insurers, health and welfare funds operate on a nonprofit basis, for the benefit of members and their sponsors, not shareholders.

    Industry Products
  • Medical benefits
  • Prescription drugs
  • Dental benefits
  • Long-term disability benefits
  • Death benefits
  • Vision
  • Industry Activities
  • Providing employee health and welfare benefit plans (excluding pensions)
  • Providing union health and welfare funds
  • Negotiating contracts with insurance carriers using collective bargaining
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • S&P 500
  • Number of employees
  • Number of people with private health insurance
  • Total health expenditure
  • Per capita disposable income
  • Yield on 10-year Treasury note

  • Current Performance
  • Revenue stagnates
  • Income softens
  • Industry structure
  • Growing consolidation
  • Chart: Revenue Growth

  • Industry Outlook
  • Increasing expenditures
  • Ongoing trends
  • Healthcare reform
  • Table: Health & Welfare Funds Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Health & Welfare Funds Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Construction
  • Manufacturing
  • Transportation and Warehousing
  • Educational Services
  • Coal & Natural Gas Power

  • Key Selling Industries
  • Custody, Asset & Securities Services
  • Portfolio Management

  • Products & Services
  • Medical benefits
  • Dental benefits
  • Prescription drugs
  • Death benefits
  • Vision
  • Long-term disability benefits
  • Chart: Health & Welfare Funds Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Employer Contribution
  • Investment income
  • Employee Contribution
  • Sale of assets and capital gains
  • Chart: Major Market Segmentation for the Health & Welfare Funds Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitOther
  • Chart: Cost Structure Benchmarking – Sector vs Health & Welfare Funds

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Health & Welfare Funds Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Health & Welfare Funds 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 & Welfare Funds Industry
    Includes:
  • Industry Revenue (2007-2021)
  • Industry Gross Product (2007-2021)
  • Establishments (2007-2021)
  • Businesses (2007-2021)
  • Employment (2007-2021)
  • Wages (2007-2021)
  • National Health Expenditures (2007-2021)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Asset Management
  • The management of a fund's assets to determine the best investment strategies to meet its goals.
  • Contingent Worker
  • An employee working on a casual, part-time or contractual basis.
  • Defined Benefit Program (Db)
  • An employer-sponsored plan where employee benefits are sorted out based on a formula using factors such as salary history and duration of employment.
  • Why buy this report?

    The Health & Welfare Funds industry market report contains strategic analysis of the key drivers influencing the industry. Save hours of time on research and prospecting using IBISWorld’s standardized, up-to-date reports on thousands of industries. Our industry research provides growth and profit forecasts for a five-year outlook period, presented in a clear and user-friendly format.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Health & Welfare Funds:
    • 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 & Welfare Funds 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 & Welfare Funds, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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