For individuals with a multi-million dollar net worth, forgoing expensive health insurance can be a rational financial choice. The substantial savings on premiums (e.g., $300-400k over a decade) can create a fund large enough to cover most medical costs out-of-pocket, effectively creating a self-insurance pool.
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By allowing insurance companies to price plans based on biometric data (blood pressure, fitness), you create powerful financial incentives for people to improve their health. This moves beyond abstract advice and makes diet and exercise a direct factor in personal finance, driving real behavioral change.
Generic financial advice often fails because it ignores an individual's specific circumstances. A better approach, similar to medicine, is to tailor strategies to a person's net worth. Someone with under $10k needs different advice than someone with over $1M, just as a morbidly obese person needs a different fitness plan than an athlete.
For high earners, strategic tax mitigation is a primary wealth-building tool, not just a way to save money. The capital saved from taxes represents a guaranteed, passive investment return. This reframes tax planning from a compliance chore to a core financial growth strategy.
While competitors like United and Aetna are prioritizing margins in a tough Medicare Advantage market, Humana is aggressively pursuing growth. This is a high-risk gamble, as new members are typically unprofitable in their first year. The strategy relies on a favorable, and uncertain, future change in government reimbursement rates.
The strategies that get you to the $1-10 million net worth level (Level 4) are insufficient to reach the next level ($10M+). Even saving $300k a year can take 17 years to bridge this gap. Reaching the upper echelons of wealth typically requires a major liquidity event, like selling a business, not just salaried income and investing.
The immense regulatory complexity in U.S. healthcare creates an estimated $500 billion "tax" of administrative bloat. The non-obvious opportunity is that by using AI to eliminate this waste, the savings could be redirected to fund expanded patient care, rather than just being captured as profit.
Widespread cancellation of medical debt, while well-intentioned, may remove consumer pressure on providers. If patients don't need to shop around or question prices because they anticipate forgiveness, it eliminates a key market force needed to control escalating costs.
Healthcare prices have risen 2.5 times more than groceries, but consumers are less sensitive to these increases. Unlike the frequent, tangible cost of eggs, infrequent medical bills make people "numb" to rising prices, masking a major source of inflation that policy changes can suddenly make visible.
Contrary to the retail investor's focus on high-yield funds, the 'smart money' first ensures the safety of their capital. They allocate the majority of their portfolio (50-70%) to secure assets, protecting their core fortune before taking calculated risks with the remainder.
Government subsidies within healthcare systems like the ACA create a perverse incentive for providers and insurers to inflate prices. This triggers a toxic flywheel: higher costs demand more subsidies, which in turn fuel further price hikes, making the underlying problem of affordability worse over time.
