The Investment Premium Reserve (IPR) is the core innovation behind Source Health Insurance's insurance model. Instead of collecting your premiums and keeping them — as every traditional insurer does — Source Health Insurance routes 85–89% of every premium dollar into a personal account in your name.
That account earns competitive variable interest (currently targeting approximately 5% APY, adjusted periodically based on market conditions). It is legally yours. And it does not disappear when you switch plans, change jobs, or move to a different state.
How It Works
When you pay your monthly premium, Source Health Insurance splits it in two:
- 85–89% goes to your IPR (89% on the HDCP plan, 85% on the HDHP). At a typical premium of $275–325/month, that is $235–290 flowing directly into your account.
- 11–15% covers administration and reinsurance. This funds claims processing, regulatory compliance, and catastrophic reinsurance protection.
Your IPR balance earns competitive variable interest (currently targeting ~5% APY), compounded monthly. After one year at a typical $275–325/month premium, your balance is approximately $3,200–3,900. After five years, roughly $19,000–23,500. After ten years, $40,000–55,000+.
Why It Is Legal
The IPR is not a workaround or a gimmick. It is a legal insurance structure in which the reserve that backs your coverage is held in your name rather than the insurer's. Source Health Insurance plans are fully ACA-compliant, include all 10 essential health benefits, and are filed with state insurance departments.
The Difference From Traditional Insurance
In a traditional plan, your premiums fund a collective pool. When you stay healthy — as most people do most years — your premiums fund other people's claims and the insurer's profit margin. Nothing comes back to you.
The IPR model changes the fundamental economics. Your premiums still fund reinsurance for catastrophic events. But the primary reserve is yours — not the insurer's.
[Placeholder — expand with member projections, comparison tables, and regulatory framework explanation.]