The HR health administration services market in the US was valued at almost USD 41 billion in 2015 and is expected to surpass USD 50 billion by 2020.
Procurement market intelligence analysts have announced its latest market research report on HR health administration services in the US for the period, 2016-2020. This market analysis discusses the major drivers and key emerging trends that will influence the growth of the HR health administration services market in the US during the forecast period. Some of the top vendors listed in this industry analysis include United Health Group, Anthem, Aetna, Mercer, and AON HEWITT.
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According to Angad Singh, a procurement specialist at Technavio for research on category spend intelligence, “In the US, companies with more than 50 employees have to comply with the guidelines of the Affordable Care Act. The need to adhere to such stringent legislations among organization creates the need for employers to integrate their healthcare and benefits administration systems with their core HR systems, such as payroll, labor, and attendance systems.”
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The new procurement market intelligence report analyzes some of the key drivers and trends responsible for the growth of this market and its sub-segments.
Need to comply with stringent regulatory norms
HR health administration service providers have developed expertise and knowledge in the field of managing stern regulatory compliance issues, especially pertaining to healthcare. As a result, organizations in the region increasingly rely on the expertise of such service providers to manage their administration’s systems, leading to the growth of the HR health administration services market in the US.
Focus on cost reduction
Performing in-house healthcare administration can make organizations incur substantial costs. To perform claim handling tasks, the company needs to recruit and train its dedicated staff and invest in advanced technologies, which is again cost-intensive. As a result, companies hire HR health administration service providers for such tasks, which can bring about savings of around 15%. The government’s intervention to bring in technology to make healthcare more affordable is also increasing, propelling the demand for HR health administration services in the US.
Growing need for better employee engagement initiatives
Employee engagement involves initiatives by the HR team to motivate their employees and enhance their performance. By hiring expert health administration service providers, the HR team can ensure that the organization’s employees get the best services available in the market.
A more detailed analysis is available in the procurement market intelligence report titled, ‘HR Health Administration Services Market in the US – Procurement Market Intelligence 2016’.
