Market Challenges And Opportunities

Global Medical Devices Reimbursement Market Drivers:

High prevalence of chronic diseases to propel market growth

One of the key factors expected to augment growth of the global medical devices reimbursement market during the forecast period is the increasing prevalence of chronic diseases worldwide. Such a high burden of chronic diseases leads to an increase in demand for affordable and high-quality healthcare services, and it is expected to propel the market growth. According to the World Health Organization (WHO), non-communicable diseases (NCDs) kill over 41 million people each year, equivalent to 74% of all deaths worldwide. Cardiovascular diseases account for most NCD deaths, or 17.9 million people every year, followed by cancers (9.3 million), chronic respiratory diseases (4.1 million), and diabetes (2.0 million).

Growing geriatric population to drive market growth

Another factor which is driving the growth of the global medical devices reimbursement market is the rise in geriatric (aging) population around the world. For instance, aging population is prone to developing infections and associated complications, which in turn increased need for affordable healthcare services. According to the UN DESA’s (United Nations Department of Economic and Social Affairs) Population Division, 1 in 6 people in the world will be over the age 65 by 2050, up from 1 in 11 in 2019. In many regions, the population aged 65 will double by 2050, while global life expectancy beyond 65 will increase by 19 years.

Global Medical Devices Reimbursement Market Opportunities:

Increasing cost of healthcare is expected to provide significant growth opportunities for players in the global medical devices reimbursement market. For instance, persistent increase in health care costs is driving stakeholder interest in reimbursement. According the CMS (Centers for Medicare & Medicaid Services), national healthcare expenditure in the U.S. grew 2.7% to US$ 4.3 trillion in 2021, or US$ 12,914 per person, and accounted for 18.3% of Gross Domestic Product (GDP). Moreover, today, chronic disease affects 50% of the population, and its care consumes more than 85% of health care costs. This in turn is driving the market growth.

Favorable or supportive government initiatives or programs are expected to offer lucrative growth opportunities for players in the medical devices reimbursement market. The government plays a vital role in shaping all aspects of the healthcare sector. For instance, Affordable Care Act (ACA), implemented in the U.S., focuses on expanding health insurance coverage to individuals with low income. The ACA aims to improve the quality of healthcare services and reduce the cost of care. Moreover, in February 2020, the Indian government levied a 5% ad-valorem health tax on imports of a variety of medical, dental, surgical, and veterinary devices.

Global Medical Devices Reimbursement Market Restraints:

Complex framework to hinder growth of the market

One of the key factors expected to hamper the growth of the global medical devices reimbursement market is the complex framework. The healthcare reimbursement system is highly complex, and the main limitation is that the rules governing it change very often. Moreover, reimbursement rules also vary across countries. Reimbursement rates, in most countries, applicable for a medical device or procedure type are cost based, while in some countries, they are value based. It would be a good idea to become familiar with reimbursement policies ahead of time.

Limited coverage and reimbursement to hamper market growth

Another factor which is hampering the growth of the global medical devices reimbursement market is the limited coverage and reimbursement. Patients’ access to medical devices may be restricted by the limited coverage and reimbursement policies of some insurance companies and government programs. For instance, if a medical device falls into the fee-for-service or Tw-DRGs, NHI fully covers the cost of the medical device; however, if the medical devices fall into balanced-billing, NHI covers only part of the price, and the consumer pays the remaining amount.