Medical Devices Reimbursement Market Analysis

Global Medical Devices Reimbursement Market Overview

Medical Devices Reimbursement Market Size was valued at USD 436.8 Billion in 2022. The Medical Devices Reimbursement market industry is projected to grow from USD 490.0 Billion in 2023 to USD 1230.8 Billion by 2032, exhibiting a compound yearly growth rate (CAGR) of 12.20% during the forecast period (2023 - 2032). Increased demand for advanced and innovative medical devices and a growing aging population with chronic diseases are the key market drivers improving the growth of the market.

Source: The Secondary Research, Primary Research, MRFR Database and Analyst Review

Medical Devices Reimbursement Market Trends

• Increasing demand for advanced and innovative medical devices is driving the market growth

Market CAGR for medical device reimbursement is being driven by the rising demand for the advanced and innovative medical devices. The healthcare industry is continuously evolving, with rapid advancements in medical device technology. New devices are often more effective, less invasive, and offer better patient outcomes. Patients and healthcare providers seek access to these innovative devices to improve the quality of care. Many countries are experiencing an aging population, leading to a higher prevalence of the chronic diseases and conditions. As the elderly population rises, there is an increased need for medical devices to diagnose, monitor, and treat these conditions.

Reimbursement for medical devices becomes crucial in ensuring that elderly patients can access the best available technology. The global burden of diseases, like cardiovascular diseases, diabetes, and cancer is on the rise. Medical devices, including diagnostic tools, implantable devices and therapeutic equipment, play a vital role in managing and treating these conditions. Reimbursement policies can encourage the adoption of these devices by making them more affordable for patients and healthcare providers. Many governments recognize the importance of medical devices in improving healthcare outcomes and reducing long-term healthcare costs. They may implement reimbursement policies to incentivize the use of certain medical devices that have demonstrated cost-effectiveness or clinical efficacy. Ensuring access to necessary medical devices is a priority for healthcare systems worldwide.

Reimbursement policies can help bridge the gap in access to medical devices, particularly for underserved populations, by reducing the financial burden on patients and healthcare facilities. The competitive landscape in medical device industry encourages innovation and cost-efficiency. Companies strive to develop products that offer value for money. Reimbursement policies that favor cost-effective and high-quality devices can drive growth in the market. Reimbursement policies and programs play a crucial role in ensuring that seniors and individuals with chronic diseases have access to necessary medical devices, which can lead to increased demand and market growth. Government and private healthcare payers may expand reimbursement coverage to accommodate the healthcare needs of this aging demographic, driving the adoption of medical devices. Thus driving the Medical Devices Reimbursement market revenue.

Medical Devices Reimbursement Market Segment Insights

Medical Devices Reimbursement Payer Insights

The Medical Devices Reimbursement Market segmentation, based on payer, includes Public and Private. The private segment dominated the market, accounting for the largest market revenue due to its significant financial resources and flexibility in coverage decisions. Private insurance companies often offer comprehensive health plans that include coverage for a broader range of medical devices, attracting a substantial customer base. Additionally, private payers can quickly adapt to market demands and incorporate new and innovative medical devices into their coverage plans, incentivizing manufacturers to develop cutting-edge technologies. They also tend to have less bureaucracy and shorter approval processes compared to government healthcare programs, making it easier for patients to access devices. Further, the competitive nature of the private insurance industry drives them to provide attractive reimbursement options and benefits, further solidifying their dominance in the market. On the other hand, public payers segment demand is growing due to the rising prevalence rate of chronic diseases.

Medical Devices Reimbursement Healthcare Setting Insights

The Medical Devices Reimbursement Market segmentation, based on healthcare settings, includes Hospitals, Outpatient Facilities and Others. The hospital category dominates the market due to its substantial volume of medical procedures and device utilization. Hospitals are typically the primary settings for complex medical treatments and surgeries, which often involve the use of expensive medical devices. They have established relationships with healthcare payers, enabling them to negotiate favorable reimbursement terms. Additionally, hospitals often have the resources and infrastructure to submit and manage reimbursement claims efficiently, making them a central player in the medical device reimbursement ecosystem.

Figure 1: Medical Devices Reimbursement Market, by Healthcare Setting, 2022 & 2032 (USD Billion)

Source: The Secondary Research, Primary Research, MRFR Database and Analyst Review

Medical Devices Reimbursement Regional Insights

By region, the study gives market insights into the North America, Europe, Asia-Pacific and the Rest of the World. The North American Medical Devices Reimbursement market area dominates due to its well-established healthcare infrastructure and robust reimbursement policies. The United States, in particular, has a large and advanced healthcare system with extensive reimbursement mechanisms in place, which encourages the adoption of costly medical devices. Additionally, the presence of numerous innovative medical device companies and a high demand for advanced healthcare technologies contribute to North America's leadership in this market.

Further, the main countries studied in the market report are The US, Canada, Germany, France, the UK, Italy, Spain, Japan, China, India, Australia, South Korea, and Brazil.

 Figure 2: MEDICAL DEVICES REIMBURSEMENT MARKET SHARE BY REGION 2022 (USD Billion)

Source: The Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe's Medical Devices Reimbursement market accounts for the second-largest market share due to the implementation of universal healthcare systems and government-funded healthcare programs that aim to ensure equitable access to medical devices and treatments for all citizens. Further, the German Medical Devices Reimbursement market held the largest market revenue, and the UK Medical Devices Reimbursement market was the fastest-growing market in the European region.

The Asia-Pacific Medical Devices Reimbursement Market is expected to grow at the rapid CAGR from 2023 to 2032. This is due to the surging healthcare expenditure, growing awareness of healthcare insurance, and efforts by governments to expand access to healthcare services. Moreover, China’s Medical Devices Reimbursement market held the largest market share, and the Indian Medical Devices Reimbursement market was the fastest-growing market in the Asia-Pacific region.

Medical Devices Reimbursement Key Market Players & Competitive Insights

Leading market players are investing hugely in research and development in order to spread their product lines, which will help the Medical Devices Reimbursement market grow even more. Market players are also undertaking a variety of strategic activities to spread their global footprint, with important market developments including contractual agreements, new product launches, mergers and acquisitions, higher investments, and collaboration with other organizations. To spread and survive in a more competitive and rising market climate, the Medical Devices Reimbursement industry must offer cost-effective items.

Manufacturing locally to minimize the operational costs is one of the key business tactics used by the manufacturers in the global Medical Devices Reimbursement industry to benefit clients and grow the market sector. In recent years, the Medical Devices Reimbursement industry has offered some of the most significant advantages to the medicine. Major participants in the Medical Devices Reimbursement market, including Aviva, Nippon Life Insurance, CVS Health, WellCare Health Plans, Inc.; BNP Paribas, Allianz, Humana Inc.; Cigna, UnitedHealth Group; Anthem Insurance Companies, Inc., and others, are trying to increase market demand by investing in research and development operations.

NAMSA is a company that specializes in providing various services to support the development and commercialization of medical devices and healthcare products. NAMSA offers a wide range of services, including regulatory consulting, clinical research, testing and validation services, biocompatibility testing, microbiology testing, sterilization validation, and other services necessary for medical device development and regulatory approval. In July 2023, NAMSA acquired Reimbursement Strategies, LLC. NAMSA is a medical research organization that provides services to medical device manufacturers, while Reimbursement Strategies is a consultancy that helps medical device manufacturers navigate the reimbursement landscape. This acquisition will allow NAMSA to offer its clients a more comprehensive suite of services, including reimbursement strategy consulting.

Zimmer Biomet is the medical device company that specializes in musculoskeletal healthcare. The company focuses on designing, manufacturing, and the marketing a wide range of orthopedic products, including joint replacement solutions, orthopedic surgical instruments, and dental implants. Zimmer Biomet is particularly known for its joint replacement systems, including artificial hips and knees. These devices are used to restore mobility and improve the quality of life for patients with joint-related issues. In April 2023, Zimmer Biomet partnered with BlueCross BlueShield of Michigan to offer a new reimbursement program for its knee replacements. This program will reimburse patients based on their clinical outcomes rather than on the type of knee replacement implanted. This partnership is a sign of the growing interest in value-based reimbursement models in the orthopedic industry.

Key Companies in the Medical Devices Reimbursement market include

• Aviva


• Nippon Life Insurance


• CVS Health


• WellCare Health Plans, Inc.


• BNP Paribas


• Allianz


• Humana Inc.


• Cigna


• UnitedHealth Group


• Anthem Insurance Companies, Inc.

Medical Devices Reimbursement Industry Developments

May 2023:Johnson & Johnson partnered with OptumRx to offer a new reimbursement program for its insulin pumps. This program will provide patients with financial assistance for their insulin pumps, as well as access to counseling and support services. This partnership is a sign of the growing importance of patient support in the medical device industry.

June 2023:Medtronic partnered with UnitedHealth Group to develop a new reimbursement model for spinal cord stimulators. This model will reimburse patients based on their clinical outcomes rather than on the number of devices implanted. This partnership is a sign of the growing interest in value-based reimbursement models in the medical device industry.

January 2023:McKesson partnered with OptumRx to offer a new reimbursement program for its generic drugs. This program will provide patients with financial assistance for their generic drugs, as well as access to counseling and support services. This partnership is a sign of the growing importance of patient support in the pharmaceutical industry.

Medical Devices Reimbursement Market Segmentation

Medical Devices Reimbursement Payer Outlook

• Public


• Private

Medical Devices Reimbursement Healthcare Setting Outlook

• Hospitals


• Outpatient Facilities


• Others

Medical Devices Reimbursement Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America