With insurance costs rising and providing ever-decreasing benefits to their customers, many people are seeking alternatives that are affordable, flexible, and align with their values. The answer has come in the form of health sharing programs that can offer greater flexibility in healthcare for lower costs.
While most health-sharing programs are religious, a growing number of non-religious programs are springing up for those interested.
What Is Health Sharing?
Health sharing is a program where members voluntarily share each other’s medical costs by paying a monthly amount, which is then pooled and distributed to help with other members’ medical bills. While not insurance, their goal is to provide members with the benefits of insurance without exorbitant costs.
Currently, there are two kinds of health share programs. The most prominent one is “health care sharing ministries,” defined as arrangements among individuals of the same religion. They are categorized as 501(c)(3) and not regulated like typical insurance. Additionally, these organizations must limit membership accordingly and disclose that sharing is voluntary, with members remaining personally responsible for their bills. They often include a statement of faith and a code of conduct, such as no smoking, drinking, or partaking in risky sports, that potential members must agree to.
In contrast, non-religious health sharing programs do not have the same exemptions from insurance regulations, operating as voluntary membership associations. Therefore, they do not have to limit their membership to those of a similar faith. While they may have an ethics statement and a code of conduct for their members, they do not have the same requirements for membership that religious health sharing programs need to have.
Health Sharing vs. Traditional Insurance
While health sharing’s main attraction is its low monthly prices, people are also attracted to this option because of the flexibility of provider options and the lack of enrollment restrictions.
Health sharing works for people and families who enjoy good health and want to avoid the high monthly rates of traditional insurance. Additionally, younger people who are less likely to have severe health issues can find them attractive due to the lower price, with some health sharing programs offering options tailored for younger customers, including lower rates and catastrophic protection for emergencies.
Additionally, people who do not qualify for ACA (Affordable Care Act) tax credits because of income find that health-sharing can be a great way to save money.
Finally, this option is also an option for small business owners, self-employed, freelancers, and gig workers, who find health sharing is an affordable option for them personally, as well to provide benefits without the exorbitant insurance costs.
Potential Disadvantages of Health Sharing
While a great alternative, health sharing does come with certain factors that may discourage some people from joining them. For example, since sharing is voluntary, there is no guarantee of bill coverage, particularly if the program deems that the customer has violated their ethics and conduct guidelines in some way. This can lead to high out-of-pocket costs for the consumer.
Additionally, since they are not insurance, they do not have an assurance of solvency, fair claims handling, or an appeals process enforced by the state.
Finally, health sharing programs do not always provide coverage for things like pre-existing conditions, preventive care, prescriptions, or mental health. However, these limitations can vary widely from program to program. For example, many programs do provide coverage for pre-existing conditions after a certain length of time, generally six months to a year.
Last Thoughts
In the world of modern healthcare, personalization is something that people are more interested in than ever, sick of the one-size-fits-all approach offered by typical healthcare options, including insurance. Health sharing programs offer a unique approach to health coverage, providing people with choice and flexibility.
Often, the discussions around health sharing versus. Traditional insurance centers around which one is superior to the other. However, at the end of the day, it is not about whether health sharing is better than traditional insurance; it is about which is better for you.