The Complete Guide
A complete guide to the Investment Premium Reserve model — the insurance structure that returns 80–87% of your premiums to an account you own.
Section 1
Traditional health insurance operates on a simple principle: you pay premiums, the insurer pools that money, pays claims from the pool, and keeps whatever is left. In a good year — where the pool pays out less than it collected — the surplus belongs to the insurer. It does not come back to you.
The ACA's Medical Loss Ratio (MLR) rule requires insurers to spend at least 80% of premiums on medical claims and quality improvement. This sounds like protection. It is not. The 80% applies to the entire risk pool — not to you individually. A healthy 32-year-old who visits the doctor twice a year may generate $800 in claims on a $3,800 annual premium. The insurer keeps the difference. The MLR rule does nothing to help that member.
This is not fraud. It is the model. Healthy members subsidize sick members, and insurers profit from the spread. Traditional insurance was designed before modern financial structures existed, before federal price transparency laws, and before individual health accounts were legally possible. It has not meaningfully changed in 50 years.
Over 10 years at $300/month (a typical mid-range premium), a healthy adult pays $36,000 in premiums. On the last day of year 10, they own exactly $0. Every dollar went to the insurer. Source Health Insurance changes this.
Traditional Insurance — 10 Years
Zero. Nothing. Gone.
The Medical Loss Ratio protects the pool, not you. It ensures insurers spend 80% on claims across all members. A healthy member's excess premium subsidizes sick members' excess claims. The insurer keeps the profit.
Section 2
The IPR is not a savings account you contribute to on top of your premium. It is built into the premium structure itself. Every month you pay your premium, 80–87% of it flows directly into a personal account in your name — the exact percentage depends on your plan.
Your monthly premium is received by Source Health Insurance. Premiums start at $209/month and are typically $275–325/month depending on your age, state, and plan choice.
HDCP — High Deductible Care Plan
Your Investment Premium Reserve
Maximum equity growth. Personal account, competitive variable interest, legally yours.
Administration
Network, claims, compliance, reinsurance.
HDHP — High Deductible Health Plan
Your Investment Premium Reserve
Strong equity growth + HSA-compatible.
Administration + Wellness
Includes your \$100/mo wellness benefit — use for Source Health Wellness or it rolls to your IPR.
You use the Care Approved Card at any provider. Prices are based on self-pay rates under federal Price Transparency laws — typically 30–70% less than insurer-negotiated rates. The savings on each transaction stay in your IPR, growing your balance.
Your IPR balance grows every month. It earns competitive variable interest (currently targeting ~5% APY, adjusted periodically based on market conditions), compounding monthly. If you leave Source Health Insurance, your balance follows you based on your tenure tier. Over 10 years: approximately $40,000–$55,000+ in your personal reserve, depending on your plan and premium amount.
Section 3
The Care Approved Card is your payment method for all healthcare services. It accesses self-pay rates that are typically 30–70% lower than insurance-negotiated rates.
Why are self-pay rates lower? Because federal Price Transparency laws require hospitals and providers to publish their cash prices, and these are almost always lower than the rates insurers negotiate. When you use the Care Approved Card, you are paying the real price — not the inflated rate the insurance system created.
See the price first
You see the exact cost before you agree to any service. No surprises.
Payment from your IPR
The charge comes directly from your Investment Premium Reserve balance.
Lower price = more reserve
Every dollar saved on a transaction stays in your IPR, compounding over time.
No surprise bills
No balance billing. No out-of-network gotchas. Price transparency is built in.
Works at hospitals, urgent care, primary care, specialists, labs, imaging, and pharmacies nationwide.
Source Health Insurance
Care Approved Card
•••• •••• •••• 4291
MEMBER NAME
FOUNDING MEMBER
IPR BALANCE
$4,127.43
30–70%
Avg. savings vs. insurance
Nationwide
Provider network
$0
Surprise bills
Section 4
Source Health Insurance plans include all 10 essential health benefits required by the Affordable Care Act. There are no gaps, no exclusions for pre-existing conditions, and no lifetime limits.
Ambulatory patient services (outpatient care)
Emergency services
Hospitalization
Maternity and newborn care
Mental health and substance use disorder services
Prescription drugs
Rehabilitative and habilitative services
Laboratory services
Preventive and wellness services
Pediatric services including dental and vision
Pre-existing conditions
No exclusions
Lifetime benefit limit
None
Annual limit on essential benefits
None
All preventive care is covered at 100% with no cost sharing — annual physicals, screenings, vaccines, and recommended preventive services cost you nothing out of your IPR balance.
Section 5
This is the most important question for any health insurance model, and the answer matters. Source Health Insurance does not ask you to take on catastrophic risk yourself.
Source Health Insurance includes reinsurance protection for catastrophic events. If your medical costs exceed your IPR balance, the reinsurance layer covers the difference. You are never left without coverage.
Reinsurance is provided by rated, regulated reinsurance partners — the same companies that back the largest insurers in the country. This is not a workaround. It is standard insurance architecture, applied to a new model.
Your out-of-pocket maximum works the same as traditional insurance. Once you hit your annual out-of-pocket maximum, covered services are paid at 100% for the rest of the plan year. You always know the ceiling.
Reinsurance layer
Catastrophic costs above your IPR balance are covered by rated reinsurance partners. Same financial backing as traditional insurance.
Annual out-of-pocket maximum
Your annual cost exposure has a hard ceiling. Once you hit it, the plan pays 100% for covered services for the rest of the year.
Emergency care always covered
Emergency services are covered regardless of provider network. You will never be denied emergency care based on your IPR balance.
ACA consumer protections
All standard ACA protections apply. No rescission of coverage. No discrimination based on health status. No surprise billing.
Section 6
A member who stays healthy — 2–3 doctor visits per year, no major claims — builds a substantial personal reserve over time.
Period
IPR balance growth
Balance
Year 1
$3,200–3,900
Year 2
$6,700–8,200
Year 3
$10,600–12,900
Year 5
$19,000–23,500
Year 7
$29,500–36,000
Year 10
$40–55K+
Projections assume $275–325/month premium, 80–87% IPR allocation, and a 5% annual interest rate for illustration purposes only. Actual rates are variable, adjusted periodically based on market conditions, and are not guaranteed. Actual IPR growth will depend on your interest rate, premium amount, and healthcare utilization.
Section 7
Life changes. If you ever leave Source Health Insurance, your IPR balance does not disappear. Access terms depend on your tenure.
0–2 Years
Early member
20% available immediately
Remainder transitions to a deferred distribution schedule.
2–5 Years
Established member
50% as dormant reserve
Continues to earn interest. Available for qualifying medical expenses or distributed on a schedule.
5+ Years
Tenured member
Full balance on structured schedule
Enhanced deferred access with the most favorable distribution terms.
The fundamental difference
Regardless of your tenure, your IPR balance is always legally yours. Source Health Insurance cannot use it, invest it for their own purposes, or refuse to distribute it. This is fundamentally different from traditional insurance — where your premiums become the insurer's property the moment you pay them.
Section 8
Is this real insurance?
Yes. Source Health Insurance plans are ACA-compliant individual health insurance plans, filed with and regulated by state insurance departments in every state where we operate. They include all essential health benefits, preventive care, prescription drug coverage, and catastrophic protection.
How is this different from an HSA?
An HSA is a savings account you fund with your own money. The IPR is funded by your insurance premiums — money you are already paying. You do not contribute extra. An HSA and IPR can work together: use your HSA for tax-advantaged savings and your IPR to build health equity through your premiums.
What if I use a lot of healthcare?
Your IPR balance pays for your care. If your healthcare costs in a given year exceed your IPR contributions, the balance draws down. Catastrophic costs above your out-of-pocket maximum are covered by reinsurance. Even high-utilization members build IPR over multi-year periods because contributions come in every month.
Is the 5% interest guaranteed?
No. The interest rate on your Investment Premium Reserve is variable and adjusted periodically based on market conditions. We target a rate competitive with high-yield savings accounts — currently approximately 5% APY. The actual rate may be higher or lower depending on market conditions. We will always communicate rate changes in advance and your current rate is visible in your member dashboard at all times.
Can my employer pay for this through ICHRA?
Yes. These plans are also available through employer ICHRA arrangements — your employer can reimburse your premium tax-free. Visit sourcehealthgroupinsurance.com for employer details.
When does this launch?
Source Health Insurance plans are in the state licensing process and expected to launch in late 2026 to early 2027 in Idaho, Iowa, Montana, North Dakota, Wyoming, New Hampshire, and Vermont. Founding Members who join the waitlist now receive priority enrollment and locked-in rates.
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