Health Share Plans: A Viable Alternative to ACA Health Insurance?

The Affordable Care Act (ACA) has made health insurance accessible to millions of Americans, but for some, the cost of premiums and deductibles can be a financial burden. As a result, some individuals are exploring alternative options, such as health share plans.

Health share plans are not health insurance in the traditional sense. Instead, they are a type of medical cost-sharing ministry. Health share plans operate on the principle of “sharing the risk” among members. Each member contributes money to a common pool, which is then used to cover the medical expenses of members who need it.

Advantages of Health Share Plans

Health share plans offer several advantages over traditional health insurance, including:

1. Lower monthly premiums: Health share plans typically have lower monthly premiums than health insurance plans. This is because health share plans do not have to pay for the same administrative costs as health insurance companies.

2. No deductibles: Health share plans do not have deductibles. This means that members do not have to pay out-of-pocket before their coverage kicks in.

3. Wider range of coverage: Health share plans often offer a wider range of coverage than health insurance plans. This is because health share plans are not subject to the same regulations as health insurance companies.

Disadvantages of Health Share Plans

There are also some disadvantages to health share plans to keep in mind:

1. Limited coverage: Health share plans do not cover all medical expenses. For example, health share plans typically do not cover prescription drugs, mental health care, or dental care.

2. Not regulated by the government: Health share plans are not regulated by the government. This means that there is no guarantee that health share plans will be able to meet their financial obligations to members.

3. Discrimination: Health share plans are allowed to discriminate against members based on their health status, age, or gender. This means that people with pre-existing conditions or other health risks may not be able to get coverage from a health share plan.

Is a Health Share Plan Right for You?

Whether or not a health share plan is right for you depends on your individual circumstances. If you are healthy and have a low risk of needing medical care, a health share plan may be a good option for you. However, if you have pre-existing conditions or other health risks, you may want to consider a traditional health insurance plan.

If you are considering a health share plan, it is important to do your research and compare different plans. You should also talk to a licensed agent who can help you understand the different options and make the best decision for your needs.