Healthcare Services
US Short-Term Care Insurance Market

US Short-Term Care Insurance Market

US Short-Term Care Insurance Market Size, Share and Growth Forecast by Distribution Channel (Direct Sales, Brokers/Agents, Banks, Others), by Age Group (Senior Citizens, Adults, Minors), by Type of Plan (PPOs, POS, HMOs, EPOs), by End User (Groups, Individuals) for 2024-2033

ID: PMRREP33452

June 2024

157 Pages

Author : Rajat Zope

Healthcare

US Short-Term Care Insurance Market Size and Share Analysis

The approximately US$45 Bn US short-term care insurance market is estimated to reach a valuation of US$110.1 Bn by the year 2033, at a CAGR of 10.2%, during the forecast period 2024 to 2033.

Key Highlights of the Market

Growing focus on raising affordability than that of long-term care insurance to attract a broader range of consumers
Emphasis on filling the coverage gaps left by traditional long-term care insurance, and Medicare
Surging urge for flexible benefits that cover a range of services, including home healthcare, rehabilitation, and temporary nursing home stays
Growing need for immediate temporary coverage for emergency

Report Attribute	Details
Market Size (2024)	US$45.0 Bn
Projected Market Value (2033)	US$110.1 Bn
Forecast Growth Rate (CAGR 2024 to 2033)	10.2%
Historical Growth Rate (CAGR 2019-2023)	9.4%

Market Introduction and Trend Analysis

Short-term care insurance is a type of insurance that provides coverage for a limited period of up to 12 months, which eventually helps individuals pay for their care while unable to perform critical activities of daily living (ADLs) due to illness, injury, or disability.

Such insurance policies generally cover a range of services, such as in-home care, adult day care, and assisted living facilities, and may also cover some medical expenses.

The introduction of big data and cloud technology is proving to be a game-changing trend for the US short-term care insurance market.

The introduction of Big Data in the insurance sector has the potential to significantly enhance competitive advantage, thereby enhancing the success of insurance providers.

According to the study, the increase in digital interactions with consumers facilitated the collection and management of a substantial amount of data about them.

The concerned authorities must get a more comprehensive understanding of the data that is available to the industry, how it is being utilized, and whether it should be used by insurers as insurers continue to accumulate more rudimentary information about insurance seekers.

The utilization of Big Data assists insurers in areas, including underwriting, marketing, rating, and claim settlement. Nevertheless, the regulator may encounter a challenge in determining whether it is advantageous or detrimental to insurance users.

Apart from this, in the same way that cloud technology has revolutionized numerous industries, the insurance sector is no exception. This is the most cost-effective method for an insurance company, its consumers, and brokers, and the industry acknowledges its importance.

Money is a significant motivator; however, the industry can save a significant amount of money by investing in a more effective training program or insurance policies through cloud computing.

In addition, it safeguards the industry from data breaches or larceny while enabling the integration of risk management, and risk assessment.

Get Your CustomizationGet Your Customization

Historical Growth and Course Ahead

The growth of the US short-term care insurance market over the past decade looks like a combination of both potential growth, and stagnation. The number of Americans over 65 years of age, a prime demographic for short-term care insurance, has been steadily increasing. This could have driven demand for policies.

The cost of long-term care services like nursing homes has been rising steadily, making short-term care insurance a potentially attractive option for covering unexpected short-term needs.

Traditional long-term care insurance already faces low participation rates. Short-term care insurance might face similar challenges, with many people opting for self-funding or relying on Medicaid.

Understanding and comparing policies can be difficult for consumers. Additionally, rising healthcare costs could be reflected in higher premiums, potentially discouraging some.

The market instability during the past few years attributes to the concerns over rising claims costs have led some insurers to exit the market or restrict policy offerings. This may however create an uncertainty for consumers.

The future of the US short-term care insurance market looks promising. This projection may carve out a niche for specific demographics, or those seeking a more affordable alternative to traditional long-term care insurance.

The growing need for innovation, new product developments, and clear value propositions could be key to attracting more consumers in the years ahead, for the short-term care insurance providers in the US.

While an aging population suggests potential demand for short-term care insurance over the years to come, the product complexity, cost concerns, and a cautious insurance industry might limit the growth trajectory going ahead.

US Short-Term Care Insurance Market Growth Drivers

Expansion of the Aging Population

The increasing ageing population in the US will boost the short-term care insurance market. Short-term care insurance policies typically provide coverage for nursing home care, home health care, and assisted living services for a limited period, typically up to one year.

As the population in the US ages, demand for these types of services is likely to increase during the forecast period. Short-term care insurance can provide a way for individuals to finance these services without having to rely solely on their savings.

The growing ageing population in the US will likely lead to increased demand for short-term care insurance products, as individuals seek ways to finance their long-term care needs.

Affordable Premium Plans

Long-term premium plans are comparatively more expensive than the newly introduced short-term care insurance plans. Insurance companies, both big and small, offer short-term care insurance policies to consumers to attract them and offer them a comparatively cheaper insurance plan.

In response to the increasing demand for short-term care insurance coverage, several leading long-term care insurance providers have begun offering such policies as well.

In terms of supply trends, there has been a significant increase in the number of insurers offering short-term care insurance policies in recent years.

This has led to greater competition in the short-term care insurance market, which has resulted in more choices for consumers and more affordable premiums.

Request Free sampleRequest Free sample

Factors Impeding the Market

Limited Coverage Options

The short-term care insurance market has several important growth restraints, out of which, the crucial restraining factor is the limited coverage alternatives available.

Short-term health insurance plans typically offer fewer coverage alternatives than standard health insurance plans, and they typically do not cover pre-existing diseases. In addition, the coverage options often are more limited.

Furthermore, in contrast to regular health insurance plans, short-term health insurance policies are not renewable and have a maximum duration that is limited to a specific period, which usually ranges between six to twelve months.

In addition, most of short-term care insurance plans do not include coverage for preventive care, prescription medicines, or mental health services.

Future Opportunities for Short-Term Care Insurance Companies in the US

Benefits of Adding Coverage Gaps into Short-Term Insurance Plans

There are numerous factors that contribute to the immense potential of the short-term care insurance market. Short-term health insurance plans are generally intended to address coverage gaps that may arise due to the employment changes, time between jobs, changes in health insurance policies, and other factors.

The short-term care insurance market is experiencing growth due to the increasing number of uninsured individuals, the rising cost of health insurance premiums, and the increasing out-of-pocket expenses.

The short-term health insurance market has also been presented with a significant opportunity due to the growing number of uninsured individuals.

This is because the short-term insurance plans are intended to offer coverage for a shorter duration and are frequently less expensive than traditional health insurance plans.

Furthermore, short-term plans are frequently more adaptable than traditional health insurance plans, enabling individuals to customize their coverage to meet their unique requirements.

The short-term care insurance market is also experiencing development due to the growing demand from contract workers and self-employed individuals.

Short-term health insurance plans are an optimal solution for these individuals, as they frequently require coverage for a restricted duration. Traditional health insurance plans may not cover specific conditions, such as mental health or maternity, that can be covered by short-term health insurance plans.

In general, it is anticipated that the market will continue to expand in the years ahead as more individuals become aware of the advantages that short-term health insurance plans can offer.

With this, market segment is anticipated to capitalize on the growing demand for health insurance coverage that is both flexible and affordable, as well as the demand from self-employed and contract workers.

Category-wise Analysis

Market Segment by Distribution Channel	Market Value Share (2023)
Agents/Brokers	>40%

Agents/Brokers Reign Supreme in the US Market for Short-Term Care Insurance

Currently, the agents/brokers segment dominates the major market share of more than 40%. Short-term care insurance (STCI) brokers/agents are essential in the expansion of the US short-term care market.

Brokers/agents are insurance professionals who serve as intermediaries between insurers and consumers. They are capable of assisting consumers in navigating the intricate insurance landscape and identifying the appropriate policy that aligns with their requirements.

Brokers/agents possess a profound comprehension of the insurance sector and offer consumers expert guidance. They can provide a detailed explanation of the intricacies of STCI policies and assist customers in comprehending the advantages and constraints of each alternative.

Brokers/agents can personalize STCI policies to accommodate the unique requirements of their clients and can customize policies according to factors such as age, health status, and budget.

Besides, brokers/agents can be beneficial in that they offer customization, convenience, cost reductions, market expansion, and expertise. Based on the type of policies, the US short-term insurance market is further bifurcated into standalone short-term care insurance (STCI), and short-term care riders.

Preference for Standalone Insurance Intact

The standalone short-term care insurance segmentation owns the major market share, with the help of preferred provider organizations (PPOs) that are a type of managed care health insurance plan that offers customers an increased flexibility in choosing healthcare providers from a network of preferred providers while negotiating lower rates with preferred providers, which can result in cost savings for customers.

This increased flexibility, and cost savings are influencing the US short-term care insurance (STCI) market. The flexibility, and cost savings offered are driving increased demand for STCI policies that are compatible with PPOs.

Customers can choose from a wide range of insurance providers within the PPO network, which widens their options and can potentially reduce costs.

Short-term care insurance policies can offer lower premiums compared to policies that are not compatible with managed care plans. This can make STCI policies more affordable and accessible to a wider range of customers.

With all these things into consideration, the STCI sub-segmentation is projected to expand at a strong CAGR of 9.4% over the forecast period from 2023 to 2033.

The US Market Analysis

The short-term care insurance market in the US is currently undergoing a period of accelerated expansion. The reason for this is a combination of factors, such as the increasing cost of traditional health insurance plans, the demand for more flexible coverage options, and the increasing demand for health insurance among self-employed and contract economy workers.

The market is also being influenced by the growing availability of short-term health insurance plans, which provide more flexibility and lower premiums than traditional plans. These plans are gaining popularity among individuals who are unable to afford traditional health insurance plans or who require more latitude in their coverage.

Furthermore, the market is being substantially influenced by the growing number of states that are permitting the sale of short-term health insurance plans. This has expanded the market to a broader spectrum of consumers and has facilitated increased competition among insurers.

In general, the US short-term care insurance market is undergoing a period of accelerated growth, which is being influenced by a variety of factors, which is anticipated to persist in the years ahead, as the sale of short-term health insurance plans is permitted in an increasing number of states and as consumers increasingly seek out more adaptable coverage options.

Recent Industry Developments

September 2021

Cigna announced the launch of a new STCI product called Cigna Supplemental Health Short-Term Recovery Care. The policy provides coverage for in-home or facility-based short-term care services, with benefit periods ranging from 30 to 360 days.

March 2021

Mutual of Omaha announced a partnership with the telehealth company Amwell to provide STCI policyholders with access to virtual healthcare services. The partnership aims to improve healthcare access and convenience for STCI policyholders.

August 2021

Aon signed an acquisition deal with Willis Towers Watson, another leading brokerage firm in the insurance industry, to have an impact on the global market and create one of the world's largest insurance brokerages.

Competitive Landscape Analysis

The insurance industry in the US is prioritizing collaboration with other companies in the sector to enhance insurance services and introduce cost-effective plans to attract more customers.

With this, there have been several partnerships, and M&A activity happening in the region. Many leading insurance-providing companies in the North American region have opted for such collaborative strategies to unfold new sustainable insurance products and services in the short-term care insurance plans that would help the industry grow.

One of the key examples of this is the partnership deal between AIG, and Medalogix, to provide policyholders with high-end care management tools and services to improve overall health outcomes and reduce the costs incurred.

Companies Covered in US Short-Term Care Insurance Market

EHealth Insurance Services Inc.
VitalOne Health
Cox HealthPlans LLC,
Wisconsin Physicians Service
Guarantee Trust Life Insurance Company
Cigna.
Illinois Health Agents, Inc.
Bankers Fidelity Life Insurance Company
United HealthCare Services, Inc.
Everest Re Group, Ltd.

Frequently Asked Questions

The demand for short-term care insurance in the US is driven by rising healthcare costs, an aging population, and gaps in long-term care coverage. Increased awareness and the affordability and flexibility of these policies also contribute to their growing popularity.

Some of the key players operating in the market include United HealthCare Services, Inc., Everest Re Group, Ltd., Cox HealthPlans LLC, Cigna, and Pivot Health.

The brokers/agents segment is likely to maintain a dominant position in the US long-term care insurance market.

The insurance providers in the US are anticipated to capitalize on the growing demand for health insurance coverage that is both flexible and affordable, as well as the demand from self-employed and contract workers.

Attributes	Details
Forecast Period	2024 to 2033
Historical Data Available for	2019 to 2023
Market Analysis	US$ Billion for Value
Key Countries Covered	United States
Key Market Segments Covered	Distribution Channel Age Group Type of Plan End User
Key Companies Profiled	United HealthCare Services, Inc. Everest Re Group, Ltd. EHealth Insurance Services Inc. VitalOne Health Cox HealthPlans LLC Wisconsin Physicians Service Guarantee Trust Life Insurance Company Cigna Illinois Health Agents, Inc. Bankers Fidelity Life Insurance Company Pivot Health
Pricing	Available upon Request

Top-Down Market Sizing	Bottom-Up Market Sizing
Universe Definition: Total global/regional market identification	Unit Economics: Average transaction values, purchase frequencies, customer lifecycle
Segmentation Filters: Geographic, demographic, and behavioral constraints	Customer Segmentation: Detailed buyer persona development and sizing
Market Share Analysis: Competitive landscape assessment and share allocation	Penetration Analysis: Market penetration rates by segment and geography
Growth Rate Application: Historical trends and forward-looking growth assumptions	Scaling Methodology: Extrapolation techniques with confidence intervals

Interested in this report?

Request customization, ask for expert consulting, access a sample report, or simply express your interest—our team will assist you with the right insights and solutions.

Request Custom VersionRequest Custom Version

Clients

Media Citation

Get In Touch

Loading page data

Please wait a moment

Market Segment by Distribution Channel	Market Value Share (2023)
Agents/Brokers	>40%

Market Segment by Distribution Channel

Market Value Share (2023)

Agents/Brokers

>40%

Attributes	Details
Forecast Period	2024 to 2033
Historical Data Available for	2019 to 2023
Market Analysis	US$ Billion for Value
Key Countries Covered	United States
Key Market Segments Covered	Distribution Channel Age Group Type of Plan End User
Key Companies Profiled	United HealthCare Services, Inc. Everest Re Group, Ltd. EHealth Insurance Services Inc. VitalOne Health Cox HealthPlans LLC Wisconsin Physicians Service Guarantee Trust Life Insurance Company Cigna Illinois Health Agents, Inc. Bankers Fidelity Life Insurance Company Pivot Health
Pricing	Available upon Request

1. Executive Summary
1.1. Global Market Outlook
1.2. Demand Side Trends
1.3. Supply Side Trends
1.4. Analysis and Recommendations

2. Market Overview
2.1. Market Coverage / Taxonomy
2.2. Market Definition / Scope / Limitations

3. Key Market Trends
3.1. Key Trends Impacting the Market
3.2. Product Innovation / Development Trends

4. Pricing Analysis
4.1. Pricing Analysis, By Short-term Care Insurance Plans
4.2. Average Pricing Analysis Benchmark

5. U.S. Short-term Care Insurance Market Demand (Value in US$ Mn) Analysis 2019-2023 and forecast, 2024-2033
5.1. Historical Market Value (US$ Mn) Analysis, 2019-2023
5.2. Current and Future Market Value (US$ Mn) Projections, 2024-2033
5.2.1. Y-o-Y Growth Trend Analysis
5.2.2. Absolute $ Opportunity Analysis

6. Market Background
6.1. Macro-Economic Factors
6.2. Forecast Factors - Relevance & Impact
6.3. Value Chain
6.4. COVID-19 Crisis – Impact Assessment
6.4.1. Current Statistics
6.4.2. Short-Mid-Long Term Outlook
6.4.3. Likely Rebound
6.5. Market Dynamics
6.5.1. Drivers
6.5.2. Restraints
6.5.3. Opportunities

7. U.S. Short-term Care Insurance Market Analysis 2019-2023 and Forecast 2024-2033, By Distribution Channel
7.1. Introduction / Key Findings
7.2. Historical Market Size (US$ Mn) Analysis By Distribution Channel, 2019-2023
7.3. Current and Future Market Size (US$ Mn) Analysis and Forecast By Distribution Channel, 2023 - 2033
7.3.1. Direct Sales
7.3.2. Brokers/Agents
7.3.3. Banks
7.3.4. Others
7.4. Market Attractiveness Analysis By Distribution Channel

8. U.S. Short-term Care Insurance Market Analysis 2019-2023 and Forecast 2024-2033, By Type of Plan
8.1. Introduction / Key Findings
8.2. Historical Market Size (US$ Mn) Analysis By Type of Plan, 2019-2023
8.3. Current and Future Market Size (US$ Mn) Analysis and Forecast By Type of Plan, 2023 - 2033
8.3.1. Preferred Provider Organizations (PPOS)
8.3.2. Point of Service (POS)
8.3.3. Health Maintenance Organizations (HMOS)
8.3.4. Exclusive Provider Organizations (EPOS)
8.4. Market Attractiveness Analysis By Type of Plan

9. U.S. Short-term Care Insurance Market Analysis 2019-2023 and Forecast 2024-2033, By Age Group
9.1. Introduction / Key Findings
9.2. Historical Market Size (US$ Mn) Analysis By Age Group, 2019-2023
9.3. Current and Future Market Size (US$ Mn) Analysis and Forecast By Age Group, 2023 - 2033
9.3.1. Senior Citizens
9.3.2. Adult
9.3.3. Minors
9.4. Market Attractiveness Analysis By Age Group

10. U.S. Short-term Care Insurance Market Analysis 2019-2023 and Forecast 2024-2033, By End User Type
10.1. Introduction / Key Findings
10.2. Historical Market Size (US$ Mn) Analysis By End User Type, 2018 – 2022
10.3. Current and Future Market Size (US$ Mn) Analysis and Forecast By End User Type, 2023 – 2033
10.3.1. Group
10.3.2. Individuals
10.4. Market Attractiveness Analysis By End User Type

11. Market Structure Analysis
11.1. Market Analysis by Tier of Companies
11.2. Market Share Analysis of Top Players
11.3. Market Presence Analysis

12. Competition Analysis
12.1. Competition Dashboard
12.2. Competition Benchmarking
12.3. Competition Deep Dive
12.3.1. EHealth Insurance Services Inc.
12.3.1.1. Business Overview
12.3.1.2. Solution Portfolio
12.3.1.3. Key Clients Footprint
12.3.1.4. Go-to-Market Approach & Strategies
12.3.1.5. Recent Developments (Partnerships, Mergers etc.)
12.3.2. VitalOne Health
12.3.2.1. Business Overview
12.3.2.2. Solution Portfolio
12.3.2.3. Key Clients Footprint
12.3.2.4. Go-to-Market Approach & Strategies
12.3.2.5. Recent Developments (Partnerships, Mergers etc.)
12.3.3. Cox HealthPlans LLC
12.3.3.1. Business Overview
12.3.3.2. Solution Portfolio
12.3.3.3. Key Clients Footprint
12.3.3.4. Go-to-Market Approach & Strategies
12.3.3.5. Recent Developments (Partnerships, Mergers etc.)
12.3.4. Wisconsin Physicians Service
12.3.4.1. Business Overview
12.3.4.2. Solution Portfolio
12.3.4.3. Key Clients Footprint
12.3.4.4. Go-to-Market Approach & Strategies
12.3.4.5. Recent Developments (Partnerships, Mergers etc.)
12.3.5. Guarantee Trust Life Insurance Company
12.3.5.1. Business Overview
12.3.5.2. Solution Portfolio
12.3.5.3. Key Clients Footprint
12.3.5.4. Go-to-Market Approach & Strategies
12.3.5.5. Recent Developments (Partnerships, Mergers etc.)
12.3.6. Cigna.
12.3.6.1. Business Overview
12.3.6.2. Solution Portfolio
12.3.6.3. Key Clients Footprint
12.3.6.4. Go-to-Market Approach & Strategies
12.3.6.5. Recent Developments (Partnerships, Mergers etc.)
12.3.7. Illinois Health Agents, Inc.
12.3.7.1. Business Overview
12.3.7.2. Solution Portfolio
12.3.7.3. Key Clients Footprint
12.3.7.4. Go-to-Market Approach & Strategies
12.3.7.5. Recent Developments (Partnerships, Mergers etc.)
12.3.8. Bankers Fidelity Life Insurance Company
12.3.8.1. Business Overview
12.3.8.2. Solution Portfolio
12.3.8.3. Key Clients Footprint
12.3.8.4. Go-to-Market Approach & Strategies
12.3.8.5. Recent Developments (Partnerships, Mergers etc.)
12.3.9. United HealthCare Services, Inc.
12.3.9.1. Business Overview
12.3.9.2. Solution Portfolio
12.3.9.3. Key Clients Footprint
12.3.9.4. Go-to-Market Approach & Strategies
12.3.9.5. Recent Developments (Partnerships, Mergers etc.)
12.3.10. Everest Re Group, Ltd.
12.3.10.1. Business Overview
12.3.10.2. Solution Portfolio
12.3.10.3. Key Clients Footprint
12.3.10.4. Go-to-Market Approach & Strategies
12.3.10.5. Recent Developments (Partnerships, Mergers etc.)

13. Assumptions and Acronyms Used

14. Research Methodology

US Short-Term Care Insurance Market

US Short-Term Care Insurance Market Size, Share and Growth Forecast by Distribution Channel (Direct Sales, Brokers/Agents, Banks, Others), by Age Group (Senior Citizens, Adults, Minors), by Type of Plan (PPOs, POS, HMOs, EPOs), by End User (Groups, Individuals) for 2024-2033