No one is an island. The isolation of the pandemic has been a big reminder of how we need and rely on the communities we have chosen for ourselves. It is this same spirit of community which formed the basis for medical cost sharing and why it is such a better alternative to traditional health insurance.

People pay for health insurance to protect themselves and their family from large medical bills and to hopefully ensure they can get medical care when needed.  But did you know that health insurance is no longer the only way to guard against huge medical expenses?  It’s true! You may actually have more affordable options on the table than you know. For well over 30 years now, there’s been a steady movement of health minded communities providing a better alternative to the current problems with traditional health insurance. 

It got started in the Christian communities where folks would come together to support a fellow member in a time of need. No muss, no fuss, just neighbors sharing their resources to help another out. Think of it like today’s go-fund me. And then along the way, someone came up with the brilliant idea to take this concept and plan ahead so funds could be set aside in reserve for the next unexpected need. 

This is the simple but powerful origin story of medical cost sharing. Now, things have evolved, process and structure have been added and membership guidelines have been created to outline what’s eligible for sharing. But at the core, it’s still members helping other members.

Here are three distinct ways that medical cost sharing is very different from traditional insurance and how it’s doing a better job for people. 

First, most medical cost sharing is non-profit based. You have to realize that health insurance companies are nothing more than a middleman. They charge you extra money just for paying your doctor bills. Year over year, health insurance premiums increase faster than medical care costs and the difference is what fattens the bank accounts of corporate executives and their big institutional shareholders. But with medical cost sharing, a flat fee is set aside for things like member advisors to help folks through a time of medical need and administrative costs surrounding making sure member funds are shared appropriately. Typically, a certain amount is designated to have in reserve or on hand should a wave of large medical needs happen in the community all at once.

The remaining contributions each month are used for the sole purpose of sharing in medical needs of the members who make up the community. Sounds pretty logical, right? Well, if you think so too, you’d be in good company among the millions of Americans who have decided to forgo traditional health insurance in favor of this revolutionary solution.

The second way that medical cost sharing is better at serving the needs of everyday people is that there are no in-network requirements or red tape that so many people have become accustomed to. Members have the freedom to choose the doctors, providers, and facilities that best fit their needs. In today’s world of Google, Yelp, and advice from friends and family, why do we still think that the doctors in our insurance “network” are superior? Truth is they aren’t better. They were just the ones that the insurance company inked a contract with. With medical cost sharing, there has been a large emphasis on individual members being able to direct their own healthcare choices with the guidance and assistance of their doctor. This leads to shorter wait times to treatment, less stress on members during a time of medical need, and overall better health outcomes. 

The third reason medical cost sharing is more appealing is that on average, the monthly contribution that members make is about 30-60% less than their premiums for traditional health insurance. This is due to many factors that vary by cost sharing community, but includes things such as lower overhead and administrative costs when working on member’s medical needs, paying lower ‘cash friendly’ rates for care – which providers really appreciate, and implementing smart measures such as free second opinion services to be responsible stewards of the community dollars.

The largest hurdle usually seen for people who are considering medical cost sharing is pre-existing conditions. This does not exclude or stop anyone from joining a cost sharing community. There just simply may be a phase in approach for existing conditions prior to becoming a member. Each cost sharing community has it’s own particular definition of how they define pre-existing conditions. While these pre-existing conditions might not be initially shareable with the medical cost sharing organization, they are usually minimal enough that it shouldn’t be a large concern. For folks who do have a larger medical need going on, this may be a case where a traditional insurance solution might be a better fit.