The global medical devices reimbursement market was valued at US$ 427.26 billion in 2021 and is expected to reach over US$ 859.8 billion by 2030, poised to grow at a CAGR of 8.1% from 2021 to 2030.
The medical devices reimbursement is a payment made to a healthcare provider by a private insurer for expenses incurred while using medical devices. A private and government health insurance will usually pay the patient’s hospital expenses and the use of a medical equipment. The majority of a person’s healthcare reimbursement is covered by the government or a health insurance company, either totally or partially. The medical devices reimbursement has evolved into a critical foundation for ensuring patient’s access to advanced diagnostic and other medical technologies. The reimbursement amount is determined as a payment for specific medical instruments used or as a payment for the complete surgical procedure involving the use of surgical equipment or devices.
The medical coding is commonly used in electronic medical records and health reimbursement. One of the primary factors driving the medical devices reimbursement market’s growth is the growing technical advancement in electronic medical records. For the projected period, rising public knowledge of insurance policies, combined with an ageing population, is expected to boost the overall market development and growth of the medical devices reimbursement market.
Before obtaining certifications of market approval, most medical equipment is subjected to testing. Ambulatory visits are prohibited during the pandemic like situation, which normally applies to research investigations, as the launch of new gadgets by major manufacturers is likely to be hampered, resulting barrier to the growth of the global medical devices reimbursement market during the forecast period.
In certain sophisticated Asian countries, hospitals and outpatient facilities get reimbursed by the government for the medical devices they acquire and buy. In less developed Asian countries, reimbursement is limited or non-existent, therefore the patient or local organizations bear the financial burden. These countries’ reimbursement policies, on the other hand, are projected to evolve with time. Even if medical device product has extra features or improved efficacy, the government will often attempt to reimburse it at the same price as similar products of its type. To achieve an acceptable reimbursement price, it is necessary to be well-informed and familiar with the reimbursement policies in each Asian country.
The individuals, employers, and the government all pay the costs associated with the medical devices and healthcare under the U.S. reimbursement systems, which are a combination of public and private third-party coverage. Individuals and businesses pay private insurance firms’ premiums to costs of the medical devices. Specific populations are covered by the federal government (Medicare and the Department of Defense) and the state government (Medicaid). The aged (65 and older), low income, disabled, and veterans are among these sub-populations. Citizens with government insurance may also be covered by private insurers.
A novel medical device must first be approved by the Food and Drug Administration (FDA) before it can be used in a health care environment. This type of regulatory approval a medical device requires which is determined by its claims, with Premarket Approval (PMA) and 510k being the most prevalent approaches to the medical devices reimbursement market. A medical device is certified and given market authorization when the Food and Drug Administration (FDA) revises it successfully. A medical device can be sold at this time; however, reimbursement is dependent on the payers.
In the U.S., the medical devices reimbursement system is the method by which commercial health insurers i.e., private or government payers i.e., public pay for healthcare professionals’ products or services. As a result, the U.S. medical devices reimbursement market is flourishing in the North America region during the forecast period.
Scope of the Medical Devices Reimbursement Market
|Market Size||USD 859.8 Billion by 2030|
|Growth Rate||CAGR of 8.1% from 2021 to 2030|
|Largest Market||North America|
|Fastest Growing Market||Asia Pacific|
|Forecast Period||2021 to 2030|
|Segments Covered||Payer, Healthcare Setting, Region|
|Companies Mentioned||UnitedHealth Group, Allianz, Nippon Life Insurance, Aviva, WellCare Health Plans, Aetna, BNP Paribas, Cigna, Humana, CVS Health|
The private medical devices payers segment has garnered 65% revenue share in 2020. The presence of high number of private businesses in the industry is credited with the segment’s rise. Over the forecast period, the segment is expected to maintain its dominance. Furthermore, the rising prevalence of diabetes and cancer, as well as increased need for better treatment, are driving factors for the growth of the segment during the forecast period.
The public medical devices payers segment is fastest growing segment of the medical devices reimbursement market in 2020. The rising acceptance of public payers in emerging and developed regions, as well as increased innovation in the production of new medical devices, are important factors driving the public medical device payer’s segment growth.
Healthcare Setting Insights
The hospitals segment has lead the market and accounted revenue share 53.5% in 2020. During the forecast period, the segment is expected to retain its dominance. Additionally, the segment is being driven by the growing ageing population and the rising prevalence of chronic disorders. In large scale settings such as hospitals, the rising frequency of chronic illnesses is boosting demand for medical devices reimbursement.
The outpatient facilities segment is predicted to develop at a rapid growth rate 11.8% over the projection period. Due to increased research and development investments and the rising frequency of chronic diseases, the outpatient facilities segment is expected to grow at the fastest rate over the projection period. Furthermore, the segment is expected to be fueled by the growing need for pharmaceuticals and their cost-effective production.
North America dominated the market with the revenue share of over 50% in 2020. Over the forecast period, the medical devices reimbursement market is expected to be stimulated by rising cases of numerous severe diseases. Furthermore, in comparison to other regions, the reimbursement structure is the most advanced within the North America region.
Asia-Pacific, on the other hand, is expected to develop at the fastest rate during the forecast period. Due to increased healthcare expenditures, expanding resource demand, and increasing chronic diseases prevalence in emerging nations, Asia-Pacific is expected to rise significantly throughout the projection period.
The medical devices reimbursement market is relatively fragmented, with a few large-scale worldwide firms and several small-scale regional competitors. They have long term contracts with medical care organizations around the world and are forming strategic alliances and collaborations with other companies in different countries to expand their business. The significant market innovations will also fuel the global industry’s growth. To strengthen their position in the medical devices reimbursement market, major firms use strategies such as collaborations, mergers, acquisitions, and the development of new products. To create technologically improved products, key market players are heavily spending in research and development activities.
Some of the prominent players in the global medical devices reimbursement market include:
Segments Covered in the Report
By Healthcare Setting
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