by Medical devices such as orthopedic implants, cardiac stents, diagnostic imaging equipment and intraocular lenses play a pivotal role in the diagnosis, prevention and treatment of diseases. Reimbursement of medical devices ensures access to life-saving technologies for patients. The global medical device reimbursement involves coverage policies by both public and private payers for various medical device procedures and technologies. Public payers like Medicare & Medicaid provide coverage to aged and low-income population, whereas private insurers reimburse medical device claims filed by employers and individuals. The global Medical Devices Reimbursement Market is estimated to be valued at US$ 543.04 Mn in 2024 and is expected to exhibit a CAGR of 7.5% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the key trends in the medical devices reimbursement market is shift towards value-based payment. Under this emerging payment model, providers are paid based on quality and efficiency of care rather than procedure volume. This encourages providers to choose cost-effective treatment options and technologies. Payers are increasingly experimenting with value-based models like bundled payments, pay-for-performance, and warranties to link reimbursement with clinical outcomes. This will likely affect reimbursement decisions for certain medical devices in the coming years. Another notable trend is rise of private label medical plans with limited networks and narrow scope of coverage. To manage escalating healthcare costs, some insurers are launching stripped-down plans covering only basic benefits and procedures. This can restrict access to novel yet expensive devices for certain customers.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderate due to the high capital costs required to engage in R&D along with established regulations.
Bargaining power of buyers: The bargaining power of buyers is high due to the presence of many existing players and the differentiated nature of products.
Bargaining power of suppliers: The bargaining power of suppliers is moderate as there are many component suppliers and brands can switch to alternate suppliers.
Threat of new substitutes: The threat of new substitutes is low as medical devices have few substitutes and switching costs are high for customers.
Competitive rivalry: Competition in the market is high among existing players.
Key Takeaways
The Global Medical Devices Reimbursement Market Size is expected to witness high growth. Growth will be driven by rising healthcare expenditures, aging population, increasing prevalence of chronic diseases and improving insurance coverage in developing regions.
Regional analysis: North America is expected to dominate the market during the forecast period. This is attributed to the well-established healthcare infrastructure and favorable reimbursement policies in the region. Asia Pacific is likely to witness the highest growth rate due to growing healthcare infrastructure, increasing treatment rates and rising disposable income in the region.
Key players: Key players operating in the Medical Devices Reimbursement market are Regeneron Pharmaceuticals, Inc., Eli Lilly and Company, AstraZeneca PLC, GlaxoSmithKline plc, Sanofi SA, Roche Holding AG, Novartis AG, Merck & Co.Inc., Pfizer Inc., Johnson & Johnson, Takeda Pharmaceutical Company Limited, Moderna, Inc., BioNTech SE, CSL Limited, Sinovac Biotech Ltd. These players are focusing on new product launches and partnerships with suppliers & payers to strengthen their market presence.
