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As of 2024, the average cost of an ACA-qualified silver-tier health insurance plan covering a family of four tops $22,000 per year, before accounting for subsidies. Whereas Medical Cost-sharing is a viable alternative to traditional health insurance that helps people save money every year.
For millions of families who don’t qualify for a subsidy, or only for a small one, that’s simply not sustainable.
What’s more, deductibles on traditional health insurance plans continue to relentlessly increase. The average deductible for an ACA-qualified health insurance policy as of 2021 was $6,921 for Bronze plans and $4,816 for Silver plans.
In other words, Americans have to spend thousands of dollars before the inflated premiums charged by traditional insurance companies begins to do them any good.
Millions of American families left behind by the Obamacare subsidy schemes are searching for reasonable, cost-saving alternatives.
That’s where medical cost-sharing programs – often called “Healthsharing” programs – can play an important role. Healthsharing offers an affordable and flexible alternative to traditional health insurance.
In this article, we’ll explore the advantages of medical healthsharing plans and cost sharing may be the right choice for you.
Medical Cost-sharing is a healthcare financing method that allows individuals to share medical expenses with a community of like-minded individuals.
Healthshare programs aren’t run by for-profit insurance corporations. Instead, healthshare organizations are non-profit, voluntary associations of people who share a common set of values and who agree to help share one another’s medical bills.
Healthsharing organizations are often organized around shared beliefs or religious affiliations. Members contribute a set amount of money each month. When a member incurs medical expenses over a certain amount, the health sharing community helps share the financial burden of those expenses.
Medical cost-sharing is not traditional health insurance and is not regulated in the same way. However, many Healthsharing programs are members of the Alliance of Health Care Sharing Ministries, a self-regulatory organization that promotes ethical and transparent practices.
The monthly contribution for health share plans is typically 30 to 40 percent lower than the unsubsidized cost of a comparable traditional health insurance policy. This translates to immediate savings of hundreds of dollars per month for a family of four, and thousands of dollars per year.
Where a Silver-level health insurance policy purchased over your state’s ACA exchange typically carries a premium of more than $1,200 per month for a family of four, many widely-available healthsharing plans are available for less than $600 or $700 for the entire family.
Healthsharing encourages personal responsibility and stewardship of healthcare resources. When individuals are directly responsible for their own healthcare costs, they are more likely to make informed and cost-effective decisions about their health.
While health insurance companies are required by law to take all comers, healthsharing organizations generally restrict membership to people who agree to live relatively healthy lifestyles. Members must typically agree not to abuse alcohol or illegally abuse drugs, exercise regularly, and avoid risky or irresponsible lifestyles.
This contributes immensely to the cost savings available in the healthsharing model.
Additionally, members of healthsharing programs are often encouraged to take an active role in managing their own health and wellness. Many healthsharing programs offer health and wellness resources, including:
These resources help members make informed decisions about their health and encourage them to take proactive steps to maintain their health and prevent illness.
Healthsharing organizations typically have a healthier risk pool compared to traditional insurance plans. This further helps control costs across the entire membership.
Medical cost-sharing offers members greater flexibility in seeking and getting care compared to most traditional health insurance plans available via state Affordable Care Act exchanges.
For example, while HMO and PPO plans require plan members to restrict themselves to a narrow, limited care network for non-emergency care, healthsharing members are free to choose their own healthcare providers.
Another advantage of medical cost-sharing is the sense of community and support that it provides. Members of healthsharing programs are often bound together by shared beliefs and values, creating a supportive network of individuals who provide emotional and practical assistance to one another in times of need.
For example, many medical cost-sharing programs have prayer or support groups, where members can share their experiences and offer support to one another. Some programs also have resources for members who are experiencing financial hardship, such as community funds that can be used to help cover medical expenses.
While many medical cost-sharing organizations are explicitly faith-based in nature, not all of them are. Some are entirely non-denominational and even secular. While you must still adhere to a statement of shared values, you can find an established, quality healthsharing plan regardless of your religion.
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