A health insurance purchasing cooperative (HIPC) is a collection of businesses and/or individuals that come together to purchase health insurance plans as a collective entity. HPICs are usually formed by a group of small businesses that wish to offer direct health insurance to their employees while remaining competitive with larger companies.
With so few employees, each small business would individually struggle to commend competitive rates from insurance companies. Together, these small businesses can bargain with health insurance companies as a collective, potentially allowing them to secure better rates and remain competitive.
A HIPC is not the same as a group purchasing organization.