Demand for Home Medical Equipment Market, Healthcare Insurance on the Rise

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The following post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga.

As the world grapples with a resurgence in the coronavirus pandemic, the medical insurance industry is seeing a growth spurt as more and more people have started investing in healthcare plans.

The number of people making inquiries related to health policies has risen 50%, according to a report last year from Grand View Research. And insurers are increasingly offering customized policies to stay competitive as they strive to attract the younger generation to maintain their market share.

The global healthcare insurance market was estimated at $2.8 trillion in 2020 and is expected to grow at a compound annual growth rate (CAGR) of more than 4.6% between 2021 and 2017, according to Global Market Insights. Much of the growth can be attributed to people realizing that the only way to stay financially protected during the pandemic is by buying a healthcare insurance policy.

Growing right along with the healthcare insurance market is the demand for home medical equipment, also known as durable medical equipment (DME), which helps people complete their daily activities.

Quipt Home Medical Corp. QIPT, which focuses on respiratory care equipment, is in a great position to capitalize on the home medical equipment market.

The respiratory device market is expected to reach $29.9 billion by 2025, up from $16 billion in 2019, according to a report by market research firm MarketsandMarkets. Quipt is a leader in providing respiratory care devices through its network of more than 17,000 referring physicians worldwide and the delivery of nearly 250,000 pieces each year.

The U.S. home medical equipment market hit $11.53 billion in 2019 and is expected to reach $20.41 billion by 2027, growing at a CAGR of 5.6% between 2020 and 2027, according to a report published in April by Allied Market Research.

DME includes items like walkers, wheelchairs, and oxygen tanks as well as blood sugar monitors or test strips, catheters, cervical collars, crutches and canes, hospital beds, and kidney machines.

Medicare usually covers DME if it is durable, serves a medical purpose, is appropriate for use in the home, and is likely to last for at least 3 years.  But there are some types of DME that Medicare will not cover. If you’re a person who can walk on your own for short distances — enough to get around your house — Medicare won’t cover a motorized scooter that you only need outside the home.

It also won’t cover items that are intended to make your life more comfortable or convenient, such as grab bars, air conditioners, and bathtub and toilet seats, nor will it cover modifications to your home such as ramps or widened doors for improving wheelchair access.

Medicare also will only cover such equipment if your doctors and DME suppliers are enrolled in Medicare — it won’t pay the claims they submit if they’re not enrolled.

But Medicare isn’t an option for everyone who uses DME, so if you have a different insurance policy it’s important to understand what it will cover.

The preceding post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.