The United States ancillary insurance market was valued at USD 515.65 Million in 2025. Surging gig economy participation and rising high-deductible health plans are compelling employers and platforms to integrate ancillary insurance, including dental, vision, and critical illness, into portable, employee-chosen benefit packages. In turn, the market is projected to grow at a CAGR of 9.27% during the forecast period of 2026-2035 to reach a value of USD 1251.31 Million by 2035.
Ancillary insurance has moved beyond its traditional support role and grown into an integral part in the nation's healthcare ecosystem. In 2023, 293 million Americans had dental coverage, which reflects a steady reliance on these ancillary benefits. On the other hand, the United States Bureau of Labor Statistics notes that over 72% of full-time workers now have access to at least one form of ancillary coverage, including vision, dental, or hearing care. This trend highlights a strategic shift in employer-led health initiatives toward holistic employee wellness.
Notably, the government has amplified demand in the United States ancillary insurance market. Programs like Medicare Advantage have begun integrating ancillary services such as vision and hearing benefits into their offerings. In 2024, over 97% of Medicare Advantage plans included hearing, dental, and vision benefits, indicating rising institutional adoption. Moreover, legislative frameworks such as the Dental and Optometric Care Access Act are slowly reshaping reimbursement models, making ancillary care more accessible and financially viable for providers and insurers alike.
In addition, the private insurance sector is embracing tech-driven innovation, reshaping the entire United States ancillary insurance market trends and dynamics. Insurtech platforms are simplifying plan selection, while embedded insurance products allow employers to offer tailored bundles. For example, Lemonade based in the United States offers AI-powered property & renters' insurance. Meanwhile, Zego offers usage-based commercial vehicle coverage. Ancillary products, once seen as optional perks, are fast becoming decisive factors in workforce retention and employee satisfaction strategies.
Base Year
Historical Period
Forecast Period
Compound Annual Growth Rate
9.27%
Value in USD Million
2026-2035
*this image is indicative*
The United States ancillary insurance market observes the rapid integration of vision, dental, and hearing care into Medicare Advantage (MA) plans. According to the Kaiser Family Foundation, over 97% of MA plans in 2024 offered at least one ancillary benefit. This shift stems from CMS (Centers for Medicare & Medicaid Services) directives to increase preventative services. Insurers like Humana and UnitedHealthcare are leveraging AI tools to personalise plan offerings, linking data-driven health outcomes to reduced hospital admissions.
AI and machine learning are transforming the United States ancillary insurance market trends with claims processing. Firms such as MetLife are piloting predictive analytics tools to reduce fraud risks and process claims in real-time. By using natural language processing (NLP) for documentation review and biometric ID for verification, turnaround times are being reduced to a significant extent. This technology-led shift boosts both provider satisfaction and consumer trust. With the United States healthcare fraud burden estimated at USD 68 billion annually, innovations in fraud prevention are becoming a central growth opportunity in the market.
The gig economy’s rapid expansion is fuelling new demand in the United States ancillary insurance market. Platforms like Stride Health now partner with marketplaces such as Uber, DoorDash to offer portable dental and vision plans. Freelancers, who previously lacked access to employer-sponsored benefits, are now driving a surge in standalone policies. Moreover, the United States Department of Labor estimates over 50% of the workforce will be independent workers in ten years, underscoring the need for adaptable insurance models. Ancillary products tailored to this demographic are gaining traction, with features like low monthly premiums and no annual commitments.
Tech-driven payroll services are embedding ancillary insurance directly into HR software ecosystems, propelling the United States ancillary insurance market development. Firms like Gusto and Rippling now offer in-app selection of vision and dental benefits alongside payroll processing. This seamless integration reduces administrative burdens and encourages small businesses to offer insurance, even with limited HR capacity. The embedded insurance model also increases retention rates by simplifying the user journey.
Providers are shifting toward value-based models, where provider reimbursement is tied to outcomes rather than volume, propelling further United States ancillary insurance market opportunities. This model is now being trialled in dental and optometry networks. For instance, Guardian Life’s Dental HMO plan links reimbursements to preventative metrics such as annual cleanings or early cavity detection. Additionally, the Health Care Payment Learning and Action Network notes that value-based contracts now cover nearly 31.7% of United States healthcare payments. These mechanisms are driving patient engagement while also aligning insurers’ proposals with improved health outcomes.
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The EMR’s report titled “United States Ancillary Insurance Market Report and Forecast 2026-2035” offers a detailed analysis of the market based on the following segments:
Market Breakup by Type
Key Insight: The market spans across vision, dental, hearing, and other care categories. Vision care substantially boosts the ancillary insurance demand in United States due to its integration into employer benefits and MA plans. Dental care benefits from technology and Medicaid-driven reforms. Hearing care is gaining traction due to ageing populations and inclusion in new Medicare proposals. The “others” category, including wellness benefits and chiropractic services, is also expanding with workplace wellness initiatives.
Market Breakup by Product Type
Key Insight: Anticipated Loss Ratio and Medical Loss Ratio are emerging as critical metrics in ancillary insurance performance. ALR leads in underwriting decisions, while MLR is gaining traction as an efficiency measure, as per the United States ancillary insurance market report. These metrics help balance profitability and care delivery. Their influence is evident in how insurers design, price, and promote their plans. Both metrics are evolving with analytics-driven tools that provide real-time performance insights, ensuring smarter portfolio management and stronger compliance across this space.
Market Breakup by Demographics
Key Insight: The industry can be divided into three major demographics, including seniors, adults, and minors. Seniors dominate the United States ancillary insurance market owing to volume, driven by Medicare coverage gaps. Adults represent the fastest-developing demographic, shaped by employer benefits and digital expectations. Minors, on the other hand, are being covered under family plans, especially for orthodontics and vision care. Each demographic presents unique health and behavioural patterns, requiring customised insurance approaches.
Market Breakup by End User
Key Insight: Ancillary insurance in the United States is distributed primarily via corporates and individuals. Corporate distribution ensures scale and stability, while individual channels offer growth and flexibility. Brokers continue to play a critical role in educating buyers, especially in smaller firms. Digital platforms are streamlining access, empowering all channels with self-service tools and real-time pricing.
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By Type, Vision Care Accounts for the Dominant Share of the Market Due to Employer-Led and Government-Driven Adoption
Vision care dominates the industry due to both employer-led and government-driven adoption. According to the National Eye Institute, over 164 million Americans use some form of vision correction, creating consistent demand. Employers frequently include vision plans to boost productivity and reduce screen-related fatigue. Companies like VSP Vision Care have introduced AI-enhanced eye exams and tele-optometry to widen accessibility. Moreover, Medicare Advantage plans increasingly bundle vision services, further strengthening the United States ancillary insurance demand forecast.
Dental care is rapidly expanding within the market, driven by policy reforms and tech-driven diagnostics. The ADA reports that over 13% of adults delayed dental care due to cost, compelling insurers to reimagine accessibility. As a solution, dental startups are now integrating tele-dentistry with AI to offer diagnostics and preventative care remotely. New players are offering dental plans with no waiting periods, attracting younger consumers. Additionally, Medicaid dental expansion in states like Virginia and Maine is spurring demand. These developments are broadening the United States ancillary insurance market scope beyond traditional employer-based models.
By Product Type, Anticipated Loss Ratio Registers the Dominant Market Share with a Rapidly Evolving Healthcare Environment
Anticipated Loss Ratio (ALR) remains the cornerstone for product pricing and risk forecasting in the industry. ALR is widely used by insurers during underwriting to estimate future claims against expected premiums. Players like Aflac and Ameritas are leveraging predictive modelling tools to refine ALR forecasts. These tools use demographic, historical, and behavioural data to enhance precision. The dominance of ALR stems from its flexibility in a rapidly evolving healthcare environment where policyholders' requirements are shifting. By improving ALR accuracy, insurers can reduce under-pricing risks, ensuring sustainability, and aligning products with real-world risk profiles, thereby boosting the United States ancillary insurance market revenue.
Medical Loss Ratio (MLR) is gaining fast traction in the market, especially following the Affordable Care Act's mandates. Traditionally a metric for major medical plans, MLR is now being adapted to measure efficiency in ancillary benefits. Several states have begun tracking MLR for dental and vision plans, encouraging transparency and competitiveness. This shift is attracting regulatory interest and driving market players to adopt cost-effective models. MLR-centric reporting also improves consumer confidence and serves as a benchmark for insurer performance.
By Demographics, Senior Citizens Hold the Majority of the Market Share Due to Broader Coverage Gaps
Senior citizens occupy the majority of the United States ancillary insurance market revenue share due to the broader coverage gaps in Medicare. With more than 59.6 million Americans enrolled in Medicare, the demand for supplementary benefits such as dental and vision has grown significantly. Private insurers are tailoring products to fill these gaps. VSP, for example, offers senior-centric vision plans with glaucoma monitoring and home eye care. The growth is further supported by digital literacy among seniors rising, enabling smoother onboarding into app-based insurance ecosystems.
Working adults represent the fastest-growing demographic, as indicated in the United States ancillary insurance market report. Employers are under constant pressure to offer comprehensive benefits to attract and retain talent. According to SHRM, nearly 98% of United States companies now offer some form of dental or vision coverage to full-time employees. Younger adults, especially Gen Z, show higher digital engagement with insurance platforms and prefer flexible, mobile-accessible plans. Lifestyle-driven demand like blue-light filter lenses and cosmetic dental coverage is also shaping this demographic’s product preferences.
Corporate Benefit Packages Drive Ancillary Insurance Demand and Volume Stability
Corporates remain the dominant distribution channel, especially in mid-to-large organisations. According to LIMRA, 70% of employers think companies’ benefit package is critical for talent retention. Large employers often negotiate bundled plans with custom features, ranging from in-network dental to digital vision tests. This gives insurers volume scalability and stable renewals. Moreover, wellness-linked incentives, like discounts for preventive visits, are gaining traction in corporate benefits packages, propelling the United States ancillary insurance market growth.
Individual buyers, including gig workers and self-employed professionals, represent the fastest-growing channel in the market. Platforms such as Stride and HealthSherpa now offer standalone dental and vision plans with monthly payment flexibility. This model appeals to non-traditional workers who lack employer-backed coverage. Market dynamics, such as post-pandemic job changes and the rise of freelancing, have made personalised ancillary plans more appealing. Digital platforms have simplified onboarding, allowing instant policy comparisons and enrolment.
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Leading United States ancillary insurance market players like Aflac, Guardian Life, and UnitedHealthcare are focusing on AI, tele-diagnostics, and embedded benefits platforms. Firms are focusing on modular insurance products, enabling employers to mix and match services like dental with wellness programmes. Tele-dentistry and tele-optometry are unlocking rural penetration, while digital-first plans with subscription models are attracting gig workers.
United States ancillary insurance companies like Beam Dental and Bento are reshaping plan delivery with app-based interfaces. Strategic partnerships between insurers and technology providers are also expanding reach and customer experience. With regulatory standards pushing for cost transparency, startups are strategising pricing models to align with value-based frameworks. Insurers that adopt personalisation, automation, and outcome-linked incentives are likely to grow in the coming years.
Founded in 1955 and headquartered in Georgia, United States, Aflac Incorporated helps over 50 million people worldwide by providing them financial protection. Aflac offers instant cash benefits for qualified claims when a policyholder or insured becomes ill or injured.
Ameritas Mutual Holding Company, established in 1887, and based in Nebraska, provides a wide range of services, including insurance, finance, and employee benefits. The company's financial solutions and strategies assist people in bettering their lives.
Based in Connecticut, United States, Aetena Inc. provides services in the areas of medicine, pharmacy, dentistry, behavioural health, group life, disability, and health care administration, catering to both individuals and employer-sponsored health plans.
Founded in 1886 and based in New York City, Metlife Services and Solutions, LLC, one of the top financial services providers in the world, offers insurance, annuities, employee benefits, and asset management to assist its individual and institutional clients in navigating the ever-changing global economy.
*Please note that this is only a partial list; the complete list of key players is available in the full report. Additionally, the list of key players can be customized to better suit your needs.*
Other key players in the market are LLC, Manhattan Life Group Inc., Humana Inc., The Guardian Life Insurance Company of America, and Nationwide, among others.
Explore the latest trends shaping the United States ancillary insurance market 2026-2035 with our in-depth report. Gain strategic insights, future forecasts, and key market developments that can help you stay competitive. Download a free sample report or contact our team for customized consultation on United States ancillary insurance market trends 2026.
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*While we strive to always give you current and accurate information, the numbers depicted on the website are indicative and may differ from the actual numbers in the main report. At Expert Market Research, we aim to bring you the latest insights and trends in the market. Using our analyses and forecasts, stakeholders can understand the market dynamics, navigate challenges, and capitalize on opportunities to make data-driven strategic decisions.*
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The market is projected to grow at a CAGR of 9.27% between 2026 and 2035.
Key strategies driving the market include focusing on flavour innovation, expanding in Tier-2 cities, building B2B foodservice tie-ups, and promoting plant-based variants through retail partnerships.
Early detection of health problems and extended and inexpensive hospital stays are the key industry trends propelling the growth of the market.
The various types of ancillary insurance are vision care, dental care, and hearing care, among others.
Based on product type, the market can be divided into anticipated loss ratio and medical loss ratio.
On the basis of demographics, the market can be segmented into senior citizens, adults, and minors.
The end-users of the market are individuals and corporates.
The key players of the United States ancillary insurance market are Aflac Incorporated, Ameritas Mutual Holding Company, Aetena Inc., Metlife Services and Solutions, LLC, Manhattan Life Group Inc., Humana Inc., The Guardian Life Insurance Company of America, and Nationwide, among others.
Examples of ancillary services include ultrasounds, physical therapy, lab testing, and X-rays. Hospitals, physician offices, and independent diagnostic testing centres are the three types of facilities where ancillary services are typically found.
An incidental claim, an additional claim, or a counterclaim are examples of ancillary claims. Such a claim may be made by a party if it directly relates to the same issue as the primary dispute.
In 2025, the United States ancillary insurance market reached an approximate value of USD 515.65 Million.
The key challenges are high regulatory compliance costs and low consumer awareness delay adoption of innovative ancillary plans.
Explore our key highlights of the report and gain a concise overview of key findings, trends, and actionable insights that will empower your strategic decisions.
| REPORT FEATURES | DETAILS |
| Base Year | 2025 |
| Historical Period | 2019-2025 |
| Forecast Period | 2026-2035 |
| Scope of the Report |
Historical and Forecast Trends, Industry Drivers and Constraints, Historical and Forecast Market Analysis by Segment:
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| Breakup by Type |
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| Breakup by Product Type |
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| Breakup by Demographics |
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| Breakup by End User |
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| Market Dynamics |
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| Competitive Landscape |
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| Companies Covered |
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