Medical Device Reimbursements Will Continue to Climb This Decade

Medical devices reimbursements are not expected to slow down anytime soon.

Straits Research predicts the device reimbursement market to expand 10.1% annually over the next nine years to reach $970 billion (up from $408.4 billion in 2020). North America led the market for medical device reimbursement and is predicted to continue to do so throughout the rest of this decade.

Market growth drivers include technological developments in electronic medical records (EMR), an increase in the number of instances of chronic illnesses, and an increasing requirement for reimbursement.

The term “medical devices reimbursement” refers to the payment that is made by private insurers to healthcare providers in order to compensate such providers for the costs that were incurred as a result of the use of medical devices. In most cases, the patient’s medical costs, including the cost of using medical devices, are paid for by the patient’s health insurer or by the government. The market for the reimbursement of medical equipment is expanding as a direct result of increasing consumer knowledge regarding health insurance coverage, particularly in emerging nations. The increasing cost of healthcare, in conjunction with favourable government policies, is increasing the number of individuals who select for pay services. This will enhance the worldwide market for medical device reimbursement through 2030.
 
Chronic obstructive pulmonary disease (COPD), cardiovascular disease, stroke, and cancer are the top four causes of mortality in the United States. These disorders may be avoided, and if caught early on, treatment will not only be less expensive but also more effective. These disorders add an additional expense of around $7,900 per individual. The economic burden of cardiovascular conditions is expected to worsen in the coming years, which will fuel market growth. According to an article that was published by ScienceDaily, the cost of cardiovascular diseases will exceed $1 trillion by 2035 for the United States, and the number of Americans who will have these diseases will rise to 131.2 million (45%).
 
With a revenue share of 50% in 2020, North America led the market for medical device reimbursements and is predicted to continue to do so for the next nine years due to rising rates of a various severe illnesses. In addition, when compared to other areas, the region’s reimbursement mechanism is the most sophisticated. Committees update the list of devices every two years to include the newest goods in the reimbursement scheme.
 
The need for medical device reimbursement is projected to rise as regulatory landscapes change and pressure on the healthcare sector to save costs grows. Reimbursements in Europe are anticipated to be driven by an increase in medical device demand and healthcare facilities. The National Association of Statutory Health Insurance Funds (GKV) is the biggest payer institution in Germany, which has about 100 statutory health insurers. However, the Techniker Krankenkasse (TK) is the biggest health insurance financing organisation in Germany based on the number of covered people; in 2020, it offered insurance to around 10 million people. Additionally, private health insurance firms are essential in reimbursing the cost of medical equipment. Numerous private health insurers provide coverage to about 9 million Germans.