The U.S. Health and Medical Insurance industry is an intricate part of the U.S. economy. According to the Centers for Medicare and Medicaid Services, US health expenditures account for 17.7% of annual GDP. More money is spent per person on healthcare in the United States than in any other nation in the world, according to the World Health Organization. In fact, U.S. health expenditures are greater as a percentage of national income (or GDP) than any other United Nations member state, except East Timor.

According to IBISWorld, in the five years to 2011, industry revenue is expected to increase at an average annual rate of 2.7% to $677.3 billion. During this period, a consistent increase in healthcare expenditure (i.e. medical-cost inflation) has driven growth. As a result, industry profitability has failed to increase during the period. Furthermore, since the beginning of the recession, health insurers have struggled to maintain profit margins. At the same time, the Obama administration has introduced drastic healthcare reforms that aim to slow medical-cost inflation and decrease the uninsured rate in the United States. However, these reforms are not anticipated to take full effect until 2014.

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