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New Revenue Pocket of Health Insurance Exchange (HIX) IT Market
Public health insurance exchanges (HIXs) form an integral part of the PPACA reforms designed to ease the process of buying health coverage and make it more affordable in the U.S. Private exchanges have been in existence even before the enactment of the PPACA; however, next-generation private exchange models that make use of creative, interactive technology are being developed post-PPACA.This offers a lucrative growth potential for IT vendors as strong technology foundation is imperative for the effective functioning of these exchanges.
Private exchanges are expected to register the fastest growth rate among the HIX market by exchange type during the forecast period. The favorable growth is attributed to the increasing shift of big employers such as Walgreen and Time Warner toward private exchanges to reduce health benefit administration costs and at the same time provide their employees with multiple plan options as per their requirements. Within private exchanges, multi-carrier exchanges,primarily sponsored by third-party administrators such as brokers or benefit consultants, are expected to grow at the highest CAGR during the forecast period.
In terms of phase, the operations and maintenance segment is expected to grow at the highest CAGR during the forecast period. The factors contributing to the growth include ongoing operation costs for public and private exchanges post their implementation. Owing to theshifting trend toward cloud computing environments to enhance flexibility and minimize hardware costs, the HIX services market is projected to register a double-digit growth during the forecast period. HIX IT solutions and services for government agencies also pose a strong growth opportunity. Also, third party administrators (TPAs)/brokerage firms/consultancies are the new revenue pockets for this market in terms of end-user solutions.
The U.S. dominated the HIX IT market with over 95% share in 2013and is expected to grow at the highest CAGR during the forecast period owing to PPACA reforms (that mandated the provision of access to HIX by each state for individuals and small businesses), federal funding for implementing exchanges, and booming private exchanges.Currently, Asia and the Rest of the World do not have a measurable stake in this market. However, increasing HCIT and HIE adoption, decent IT skills, and the increasingoutsourcing trend will generate revenue for private exchanges in this market in the near future.
Health Insurance Exchange (HIX) IT Market by Type (Public, & Private Exchanges), Phase (Implementation, QA, Operations), Component (Services, Software, Hardware), End User (Government Agencies, TPAs, Health Plans) - Trends & Global Forecasts to 2018
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