Health Insurance
Health insurance is a contract between an individual or their employer and an insurance company. The individual or employer pays a premium, and in exchange, the insurance company promises to cover certain medical costs. These can range from doctor’s visits, surgeries, medications, and hospital stays, depending on the plan. Many plans have networks of healthcare providers and facilities, deductibles (an amount you pay before your insurance kicks in), and copays (a fixed amount you pay for each service).
Pros:
- Predictability: You know your monthly premium, and if you stay within your plan’s network, you have a good idea of what you’ll pay for services.
- Wide Acceptance: Most medical providers accept health insurance, especially if you’re within your plan’s network.
- Regulation: Health insurance companies are regulated by state and federal laws, offering consumers certain protections.
Cons:
- Cost: Premiums can be high, especially if your employer doesn’t help cover the cost or if you’re purchasing a plan independently.
- Complexity: Plans can be hard to understand, with varied deductibles, out-of-pocket maximums, and copay structures.
- One Network: Health Insurance typically requires you to receive all of your care in one provider network without your choice in doctor.
Health Sharing
Health sharing programs (or health share ministries) are organizations where members share medical expenses. They’re not insurance but rather a voluntary participation program. When a member has a medical need, they can submit their bills to the ministry, and the bills are then “shared” or covered by the contributions of other members.
Pros:
- Flexibility: Unlike insurance, many health sharing programs don’t have networks, allowing members to see any doctor or specialist they want.
- Cost: Monthly shares are often less expensive than insurance premiums.
- Community: Many participants appreciate the sense of community and mutual support these programs offer.
Cons:
- Lack of Guarantee: Millions of people participate in health sharing covering $3 Billion in healthcare each year. Healthcare sharing relies on the shared payments of participants.
- Exclusions: Some health sharing programs may not cover conditions or treatments that don’t align with their shared beliefs. Impact Health Sharing has no restrictions based on race, color, religion, or creed.
- Less Regulation: These programs aren’t regulated in the same way as insurance companies, so consumers get less government control.
Choosing Health Sharing or Health Insurance
When deciding between health insurance and health sharing, consider:
- Budget: Can you afford the monthly premiums or shares? Remember to factor in potential out-of-pocket expenses.
- Medical Needs: Do you have conditions that require regular treatment or medications? Consider how each option covers these needs.
- Values: If you strongly resonate with the values of a health sharing community, it might be a good fit for you.
There’s no one-size-fits-all answer to the question of whether health insurance or health sharing is right for you. Your healthcare needs, financial situation, and personal values will guide your choice. By understanding the key differences between the two options, you can make an informed decision that best suits you and your family.
Watch a video overview of health sharing and get a free quote (click here).