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Although most people can access health insurance policies, they may face two significant problems. The first problem is that the insurance premiums for medical coverage are often incredibly expensive, thus making them unaffordable for some customers. Another problem with this health insurance is that many carry a high deductible, which means that the out-of-pocket expenses are increasing rapidly. This is why many people prefer to get the top health share plans which is a much more affordable and viable option for those who fall short of being financially comfortable and for those for whom healthcare represents a large portion of their monthly budget.
But before you get the top health share plans, one should remember that these programs differ from traditional health insurance policies, and there are many distinctions between these two, which we will discuss in this post. First, you should know that a healthshare is not considered health insurance, though they operate similarly.
How does healthshare work?
Once you become a member of a healthshare program, you pay or contribute a set amount of money each month to your community. The member must pay a set amount before the medical cost-sharing community pays any medical bills, similar to a traditional health insurance plan deductible. After you have paid your decided amount, the health share program will share it in all eligible medical expenses.
Main differences between healthshare programs and health insurance
- Health Shares are non-profit organizations and have open enrollment all year long.
- Unlike Health insurance plans, healthshare plans are not required to share in Minimum Essential Coverage benefits. Though you may need MEC insurance along with your health share membership, depending on which state you live in.
- The medical cost-sharing plans are designed for larger unexpected medical needs and are thus much more affordable than traditional health insurance.
- The organizations decide what medical expenses will be shared with the community and how the bills will be paid.
- Each organization also chooses who can join their community based on similar beliefs and ideologies.
- There are usually restrictions or waiting periods with health shares for pre-existing conditions, but they typically do not have network restrictions.
- People joining healthshare communities usually save up to 30-60% on healthcare costs.
Affordability
Traditional health insurance plans are very expensive, and their prices are constantly increasing. But members of healthshare communities can have significant savings in the long term compared to those with health insurance plans. This cost-sharing program is a much more affordable option for many.
Organizational aim
Almost all health insurance companies are businesses that charge premiums for their policies in order to make money. In contrast, medical cost-sharing programs are non-profit organizations that do not collect any contributions into the plan to be used by active members who require financial assistance to cover their medical expenses.
Eligibility and payment
Most health insurance programs are bound by the mandates of ACA (Affordable Care Act). Hence, this act dictates that all individuals be accepted into plans, including those with pre-existing conditions or poor health. On the contrary, healthshare programs are not mandated by ACA; thus, membership eligibility is based only on the standards of the particular community outlined. Therefore, these ministries do not have to pool their contributions in an insurance pool that does not select its members based on health levels or lifestyle. Thus, you can share the medical costs with other like-minded individuals.
Flexibility with medical professionals
To keep the costs low, traditional health insurance plans may restrict the choice of physicians as well as hospitals that the policyholders may want to visit. Some limits may also be placed on the types of medications that are available. Whereas medical cost-sharing programs do not limit which doctor or specialist the members can visit.
The bottom line
We can conclude that both traditional health insurance plans and healthcare cost-sharing programs are meant to help people with financial assistance to cover the expenses associated with medical care. Both aim at providing help without having to pay for services outright. However, there are some significant differences between the two that must be considered before you make a choice. The best thing to do would be to consult the various providers and ministries and discuss their services.
