What Really Drives the Increase of Health Insurance

Over the past decade we have seen the rise of the healthcare industry and the major financial gains these company's are seeing in the market place. One of the largest health insurance companies in the US 10 year run is listed below. You can take a look and let me know what you think

Start price/share:$23.45 (2009) End price/share:$248.78 (2019)

Total return: 1,116.61%

Wait a second but don't my health premiums keep going up because of the "Losses" on these plans?

The last time I checked, losing money does not make a stock price rise. Yet here we see over 1,100% return off a company that claims to increase premiums to "cover losing cost"

So why do the largest companies still have a Bundled or Fully Insured Plan? It is simple, everyone is waiting for someone else to fix the old way. The problem with this is that while everyone waits, the answer is already here... Hedging

Companies Hedge their Liabilities everyday but why not Healthcare which is the largest or at least 2nd biggest line item on the balance sheet? It is simple, nobody told us we could...

This strategy is not only killing everything else in Healthcare, but it creates immediate positive cash flow while converting operating expenses into earnings for the business. Employees end up paying less in premiums and $0 for Co-Pays, Deductibles and Co-Insurance.

Organizations have been utilizing this proprietary solution for over 17 years. It is described as a financial-hedging strategy that arbitrages the price disparities in the market. It definitively improves the healthcare options offered to employees – this is not a cost-shifting scheme onto the employees. By improving the benefits, it can spin off of the embedded adverse selection risk and monetize the spread. Clients who have taken the first mover advantage have seen a sustainable competitive edge and now dominate their competition.

So why do you hate healthcare? Lack of knowing the right people at the right time.

Anthony Pacheco

Co-Founder P13:11 Partnerships

"Wealth obtained by fraud dwindles, but the one who gathers by labor increases it" Proverbs 13:11