The Healthcare Investment Plan (HIP)
An alternative to traditional healthcare insurance.
Question: What is the fundamental difference between the Healthcare Investment Plan and traditional employer-based and individual healthcare insurance products?
Answer: The Healthcare Investment Plan creates a new insurance product that gives the insurance consumer, whether an individual or business of any size, the option to turn an expense into an equity by investing in a healthcare insurance company.
Q: Is this plan meant to replace or supplement employer-based or individual health insurance?
A: It can be an alternative or supplement for an individual or business healthcare insurance product.
Q: How does the Healthcare Investment Plan work?
A: Private healthcare insurance companies carry a diverse investment portfolio. Individuals, small businesses or corporations can purchase stock in their healthcare insurance company through healthcare investment plans offered. Those who choose to own stock can regularly receive a capital gains distribution.
A Healthcare Investment Plan premium would be typically divided as follows:
20% or less for purchasing shares matched by the insurance company to increase investment capital
70% for medical coverage up to 90% for the non investor
5% for buyer catastrophic fund
5% to the insurance carrier as investment incentive
However, and depending on individual circumstances, investment distribution not only can generate income for the buyer it can be used to pay premiums, cover deductibles or build catastrophic funds.
Q: Currently employers and individuals can benefit from various tax credits and refunds in relation to expenses incurred with current healthcare insurance products. What are the tax benefits of the Healthcare Investment Plan?
A: The structure of tax credits or refunds for an employer or individual remain the same. Healthcare insurance companies, who offer the Healthcare Investment Plan, can receive up to a 20% tax credit by matching the percent of the 20% used by the buyer for purchasing shares.
Q: How does this product contain ever rising healthcare costs?
A: Costs of insurance company’s stock, the diversity of their portfolio, and their return on investment ratio, create a buyer’s market with competition between carriers. Those carriers that are the most investment worthy and provide the best medical coverage attract more public, doctor and hospital endorsements.
Insurance companies that are less investment worthy with poorer medical coverage and reimbursements will improve to heighten market competition and healthcare cost containment or dissolve.
Q: The Healthcare Investment Plan seems to depend on a sustained, healthy stock market. When the stock market experiences an economic downturn how does this affect healthcare coverage?
A: To counter market downturns a health insurance company portfolio includes guaranteed fixed annuities.
Q: How will this plan affect those who choose not to have healthcare insurance?
A: Those who do not want to buy insurance do not have to. But they lose tax credits and distribution income. The plan redefines healthcare insurance, changing it from a cost to an investment. This incentive alone will encourage the voluntary purchase of health insurance.
Q: Prescription medications are one of the major factors in rising healthcare costs. Will this plan affect drug companies?
A: Pharmaceutical companies will need to compete to be included as part of the Healthcare Investment Plan. This will drive down medication costs because insurance companies will be motivated to choose the lowest bids in order to maintain effective return on their healthcare dollar from the medical as well as the investment perspectives for their beneficiaries.
Q: Are there provisions to include Medicare and Medicaid in the Healthcare Investment Plan?
A: Under current law the funding of Medicare and Medicaid is entirely in government hands. The Healthcare Investment Plan would allow Medicare and Medicaid funds to be allocated to purchase stock in insurance companies with investment distributions used to reduce public taxation to support these federal and state programs.
Healthcare Investment Plan buyers could manage their monies and stock selection within the portfolio of the insurance companies chosen by the federal government or opt to have the federal government do it.
Q: How will the Healthcare Investment Plan address customers with pre-existing conditions?
A: Because the Healthcare Investment Plan is based on the investment return concept, pre-existing illness is no longer a deciding factor. Nor is the customer’s ability to keep their preferred physicians or transfer coverage when changing jobs or moving to another state.
Q: Will the Healthcare Investment Plan address those who cannot afford healthcare insurance.
A: 3% of a buyer’s distribution is divided into thirds: One-third for insurance company portfolio managerial fees and two thirds for funding healthcare insurance coverage for those below the poverty level. This 3% becomes a tax credit for the buyer.