HIP’s Fundamental Strategy
The following is an outline of the strategy behind the Healthcare Investment Plan (HIP) an alternative to traditional healthcare insurance.
HIP is an alternative to getting tax credits or tax refunds as an incentive to buy healthcare insurance.
- Private healthcare insurance companies carry a diverse investment portfolio.
- With their purchase of a plan, individuals, small businesses or corporations can purchase stock in their healthcare insurance company.
- Those who choose to own stock can regularly receive a capital gains distribution.
- Fiscal returns encourage an increase in the voluntary purchase of healthcare insurance.
- Medicare and Medicaid funds could be allocated to purchase stock in insurance companies with investment distributions used to reduce public taxation to support these federal and state programs.
- To counter market downturns a health insurance company portfolio includes guaranteed fixed annuities.
- Costs of insurance company’s stock, the diversity of their portfolio, and their return on investment ratio, fosters a buyer’s market with competition between carriers.
Parceling of Premiums by the Insurance Company.
With HIP, a hybrid stock is created that is both an equity and healthcare insurance. The following is an example of how the equity would be divided.
- 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
Appeal to the Public and the Insurance Company.
- With lowest premium plans HIP provides an investment opportunity that can capture previously non-insured population.
- Investment strength of company portfolio motivates purchase of highest premium plans.
- Carrier realizes income from greater volume and buyers realize income from investment.
Appeal to the Community.
- Prudent healthcare decisions by the insured, the physician and the hospital lowers healthcare cost and strengthens investment returns.
- Competition between insurance companies to be best investment and provide the best medical coverage attracts more public, doctor and hospital endorsements.
- Insurance companies that are less investment worthy with poorer medical coverage and reimbursements will have to improve to heighten market competition and Medicaid healthcare cost containment or dissolve.
- Competition to acquire physicians and access hospitals will eliminate enrollment fees for them and strengthen their bargaining position for reimbursements.
Tax Credits.
- Insurance company matches buyer’s 20% to strengthen their purchasing power with a 20% tax credit to the insurance company.
- 3% of a buyer’s distribution is divided into thirds:
- One-third for insurance company portfolio managerial fees.
- Two thirds for funding healthcare insurance coverage for those below the poverty level.
- This 3% becomes a tax credit for the buyer.
Investment Distributions.
- Creates income for buyer.
- Generates tax revenue for the government from capital gains.
- Can be used to pay premiums and cover deductibles.
- Can be used to build catastrophic funds.
Children
Parent or guardian purchases the coverage and uses the returns until child reaches 25 years of age (or after 21 when has sufficient earnings to take over payments).