Several people have asked me about health-sharing organizations, such as Sedera and Medi-Share. These programs serve as health insurance alternatives, in which a group of individuals share one another’s healthcare costs. If you are interested in participating in a health-sharing plan, here are some aspects of the system that you should be aware of.
Pros and Cons of Health Sharing Plans
The Positive:
There are several great aspects of sharing plans. Not only are you connected to a group of individuals who are praying for and with you, but there are some economic benefits to sharing plans. They offer discounts, and the premiums are generally very low.
The Negative:
That said, there are a few potential downsides of health-sharing plans that you should know about when making your decision.
First, a sharing program is not an insurance product, so there are no guarantees. This is also true if you have a Blue Cross Blue Shield or United plan. There is more money behind those plans, which can help in situations like a large catastrophic event in the area.
Second, health-sharing programs generally have comparatively fewer members, which can pose problems. A small group of members means there are limited resources to be shared amongst the group. While a Blue Cross plan, for example, has millions of members, a sharing plan will usually only have a few hundred to a thousand members. This could be an issue if you were to have a large claim that needed to be covered.
Third, you can not put money into a Health Savings Account. I won’t go into all the details here since I have a separate blog post dedicated to that subject. Just know that a Health Sharing Plan is not considered Health Insurance. That means you would not meet the requirements the IRS has established to allow that tax advantage.
What are some restrictions of health sharing plans?
Many Faith-Based Health sharing plans also usually restrict coverage for “sin”-related issues.
- If you drink alcohol or use tobacco, you may be unable to get coverage.
- If there was a scenario where one of your children became pregnant out-of-wedlock, things could get complicated.
- Some plans do assist in arranging for adoption or maternity services. However, many do not cover maternity expenses for a child conceived out of wedlock.
- While these may not be a concern for you, it is good to be aware of the restrictions sharing plans may come with. Other Health Sharing Plans do not have those restrictions so make sure you read all of the fine print during the application process.
Limited Coverage for ongoing expenses.
- If you take preventative drugs, Health Sharing Plans often will not cover them after a certain point in time.
- Some companies will limit your preventative RX to 6 months and others will limit preventative prescription drugs to 12 months.
- Examples of these types of preventative drugs:
What to Know Before Getting a Health Sharing Plan
If you decide to go with a health-sharing plan, make sure you ask your insurance agent (or us) about the laws. There are restrictions on switching to a traditional health insurance plan if you ever have the need or desire to do so. If something were to happen with the sharing group you are part of, you need to be aware of what would happen next. Also, be sure that you know what the sharing plan considers to be a pre-existing condition.
Ultimately, whether you participate in a sharing group or not is up to you. There are certainly benefits to doing so! However, it’s important to be aware of all the surrounding issues to make sure you are making a wise decision to protect yourself and your family.
For more information, you might find our Health Sharing Plans Health Sharing Plans FAQ page helpful.
Purchasing a Health Share Plan
Making these decisions can be difficult and have a number of accompanying factors. If you have any questions about health sharing plans or your health insurance policy, contact our Tri-Cities, Tennessee office. You can reach us by phone at (423) 292-4142 or email us at help@veritasrm.com. At Veritas Insurance, we offer several health share plan options and would be happy to answer your questions.
Interested in Traditional Health Insurance?
We can help you with that as well. In most states, regardless of your health, you can purchase an Individual or Family Health Insurance policy. Contact our Tri-Cities, Tennessee office at (423) 292-4142 or email us at help@veritasrm.com.
