Health Sharing as an Alternative to Health Insurance

By Tanner Doudna

             Health expenses are often one of our largest monthly bills. Between insurance premiums, doctor’s visits, etc., it’s common to pay over $1,000 per month for you and your family’s health. One strategy we encourage people to consider is switching away from traditional health insurance to a Health Sharing Plan.

               A health sharing plan is not technically insurance. They are non-profit ministries where members pay in monthly (similar to a premium) and that money goes towards covering the medical costs of other members. There are quite a few health sharing ministries out there.  They all have different terms they use, but they all have something similar to a deductible and out of pocket maximum.

               If you are using a health sharing ministry as your primary health coverage, you will usually present yourself as “self-pay” to any medical facilities and providers. Most of them will have a discounted self-pay rate. Then, depending on the program you are in, details of your expenses, etc., you may get re-imbursed by your health sharing ministry.

               As with many decisions in life, there is risk involved, and you have to decide how much is that risk worth it to you. My personal favorite health sharing ministry, CHM, proudly states that they have covered 100% of eligible medical bills in their 40+ years of operation. Even though they have a perfect track record in that area, there is still no guarantee that they will have the ability to cover your eligible medical expenses, something health insurance companies can guarantee.

               There are a lot of benefits to health sharing, with the main one being cost savings. For my young family of six, we are saving over $1,000 per month by being with CHM. You don’t have to wait until open enrollment for marketplace coverage or your job, you can start anytime. You are involved in a community of other members doing the same thing as you.

               There are also some negatives to health sharing, with the main negative being the risk that they don’t pay what they say they will pay. There aren’t regulations for health sharing like there are for health insurance. Your “premiums” are not tax deductible like health insurance. Health sharing plans are not HSA-eligible. Lastly, you will often have to pay the cost of the medical service upfront and wait for reimbursement, rather than the medical facility and your health insurance working things out and you “cleaning up the rest.”

               Switching to a health sharing plan from traditional health insurance isn’t right for everyone. It’s a calculated risk that can pay off big, especially for healthy families. They are completely flexible in that you can sign up anytime and can serve as an alternative for those who don’t have health insurance options elsewhere.