Health Sharing Plans
Health sharing plans are organized by members, in which they pay a monthly share, and healthcare costs are covered directly by the beneficiaries. In many cases, health sharing plans are a great option for those who want to avoid the high monthly premiums and out-of-pocket costs of other insurance plans.
Although they are not considered under the same umbrella as typical health insurance, these plans can still be used the same way—it is the method of payment and qualifiers that differ from traditional insurance: here’s how.
How Do Health Sharing Plans Work?
Under a health sharing plan, members will pay a monthly “share.” This share is then distributed amongst members to collectively cover everyone’s health expenses. Beneficiaries will also pay an annual “unshared” amount to cover their own healthcare costs.
Depending on individual plan details and coverage, the monthly shared cost ranges from $64 to $627. The annual unshared amount is typically around $300-$500 for individuals, $1,000 for couples, and $900-$5,000 for families (although it varies from plan-to-plan).
What are the Eligibility Requirements?
Typically, these plans are best for young people and families in generally good health. Because they are not fully regulated by the federal government, these plans may turn down people for coverage if they do not meet their specific requirements, which may vary from provider to provider.
Generally, however, these plans consider lifestyle and health conditions for eligibility. Things such as smoking habits, substance use, and preexisting conditions are all determinants. If, however, you develop a disqualifying condition while covered by the plan, it will be covered in your two or three years of membership up to $50,000.
All of this will vary based on the plan, so be sure to examine the “fine print” before applying to a health sharing plan.
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ACA Verses Health Sharing Insurance
The Affordable Care Act (ACA) regulates health insurance to meet certain requirements. Health sharing plans are not, however, required to fall under these requirements. Generally, the benefits of an ACA plan are:
- Regardless of your current state of health, you can buy coverage
- No lifetime limits or caps
- Subsidies available for those who earn less than 400 percent of the Federal Poverty Level (FPL)
The potential benefits of a health sharing plan are:
- Less expensive
- Lower deductibles and annual costs
- Avoid the penalty for not having health insurance
Explore Your Insurance Options with Expert Guidance
There are many health insurance options out there, each with their own benefits that may work for you. But finding the right plan at a good cost can be difficult. With the right guidance, you can feel confident about your coverage.
For expert insurance guidance, call Veritas Insurance Group at 563-940-2284.
