4 Careers in Health Insurance
Written by: Hilbert College • Jan 10, 2024
4 Careers in Health Insurance ¶
Health insurance serves as a contract between a consumer and an organization. The consumer, also known as the insured, regularly pays a premium in exchange for full or partial coverage of future health care costs. Though the premise of American health insurance is quite simple, the industry is vast and complex. It requires skilled professionals who can navigate laws, regulations and policies profitably and fairly.
The demand for health insurance services is on the rise. According to the U.S. Census Bureau, 92.1% of the American population had health coverage at some point during 2022. Careers in health insurance range from brokerage to management and data analysis, and they facilitate the timely delivery of services to those who need them.
Why Work in Health Insurance? ¶
Careers in health insurance are excellent for those who want to help others. Insurance professionals work with people experiencing health crises or overcoming the impact of a natural disaster. Because of the high demand for health coverage, skilled professionals in this sector enjoy a wide range of employment opportunities and above-average job security.
Many positions in health insurance require a balance of mathematical, interpersonal and technical skills. Most health insurance professionals work a standard workweek
The tasks and responsibilities associated with careers in health insurance vary widely depending on the role and employer. At the heart of these careers, health insurance professionals work to strike a balance between affordable coverage for consumers, risk reduction for insurance providers and the delivery of ethical care. They must also function in accordance with complex insurance regulations and laws.
4 Health Insurance Careers ¶
Within the health insurance sector are many roles, and each comes with a unique set of duties and responsibilities.
1. Insurance Broker ¶
Rather than selling insurance policies directly to clients, an insurance broker serves as an intermediary between potential and existing customers and multiple insurance providers. Typically, this role involves assessing the needs and wants of the client, then searching through multiple companies’ policies to find the right fit. An insurance broker is one of the only careers in health insurance that allow self-employment.
Some insurance brokers receive a regular salary, and others work strictly on commission. Many insurance brokers receive both. The median annual salary for insurance brokers was about $78,600 as of October 2023, according to the compensation website Payscale.
2. Health Care Financial Analyst ¶
A health care financial analyst helps insurance companies and health care providers maintain profitability and accuracy in the complex insurance landscape. These individuals review spending and budgets to look for ways to cut costs or get better returns on their investments. They implement strategies for cost reduction, revenue gains and the overall improvement of financial performance.
The median annual salary for financial analysts working in the insurance industry was $85,910 as of May 2022, according to the U.S. Bureau of Labor Statistics (BLS). Employment is expected to rise by 8% between 2022 and 2032, according to the BLS. The demand for financial analysts in any industry grows alongside economic activity in that same industry. Because the health insurance sector is growing, the demand for health care financial analysts is expected to climb.
3. Health Insurance Director ¶
Health insurance directors, also known as directors of medical policy, serve many important roles in health care organizations. These individuals ensure that their facilities or networks use the protocols required by their patients’ insurance providers by supervising staff, overseeing treatment plans and ensuring compliance with regulations. They may also aid in marketing a facility’s or network’s services, training new staff, and implementing new policies for patient care.
The median annual salary for health insurance directors was $122,400 as of March 2023, according to Payscale. The BLS expects employment in medical and health services management to climb by 28% between 2022 and 2023, much higher than the average job growth for all occupations.
4. Health Insurance Actuary ¶
An actuary relies on mathematics, statistics and finance knowledge to put a monetary value on uncertainty and risk. These individuals predict events that may happen in the future and calculate the financial costs associated with those events. Actuaries help their employers develop policy pricing, term limits and coverage maximums based on individual consumers’ unique risk factors.
The BLS reports that actuaries, including health insurance actuaries, earned a median annual salary of $113,990 as of May 2022. Employment in the field is predicted to grow by 23% between 2022 and 2032, according to the BLS.
Secure an Exciting Role in the Health Insurance Industry ¶
Whether you prefer to travel the country and help people or enjoy the challenge of crunching numbers behind a computer, many exciting and fulfilling careers in health insurance are available.
Hilbert College Global offers an online Master of Public Administration (MPA) in Health Administration program that helps students develop advanced skills and knowledge to succeed in various roles in health care. The MPA in Health Administration can prepare individuals who are interested in pursuing careers in health insurance. The MPA coursework teaches values, ethics and health care law—all vital in the insurance industry. An MPA also provides advanced skills, such as marketing, public relations and human resource management.
Discover how earning a MPA in Health Administration can prepare you to change lives for the better by helping people gain access to quality care.
Sources:
Analyst Answers, “Healthcare Financial Analyst Guide: Why and How to Become One”
Clements Worldwide, Why Choose an Insurance Career 10 Solid Reasons and Benefits to Consider
Investopedia, “Health Insurance: Definition, How It Works”
Investopedia, “Healthcare Sector: Industries Defined and Key Statistics”
Payscale, Average Health Policy Director Salary
Payscale, Average Insurance Broker Salary
U.S. Bureau of Labor Statistics, Actuaries
U.S. Bureau of Labor Statistics, Financial Analysts
U.S. Bureau of Labor Statistics, Medical and Health Services Managers
U.S. Census Bureau, “Health Insurance Coverage in the United States: 2022”
U.S. Chamber of Commerce, “The America Works Report: Industry Perspectives”
