HealthCare » Health Insurance » Does Medical Cost Sharing Really Cost Less Than Health Insurance? A Price Comparison

Does Medical Cost Sharing Really Cost Less Than Health Insurance? A Price Comparison

One of the biggest questions we get from those considering Knew Health Community and our medical cost sharing program is this:

“Is medical cost sharing really less expensive than traditional health insurance?”

The short answer:

Typically, yes.

Given the astronomical costs of employer-sponsored and non-sponsored insurance premiums and deductibles, most members will save a significant amount of money on their monthly healthcare costs.

How much?

Usually around 30-50%…often more.

Which means, if you’re paying the average individual premium amount of $6,368 per year, you could save $1910-$3184 annually. And this does not include your deductible or out-of-pocket expenses either.

Yeah, pretty darn impressive.

Keep in mind though that medical cost sharing is not a fit for everyone

For example, members at Knew Health Community are health conscious individuals and families who believe in taking personal responsibility for their wellness.

They eat right, they exercise, they’re in good health (or actively working to get there), they’re not reliant on continuous medication, and they value a healthy lifestyle.

That doesn’t mean you have to be in perfect health to join, to benefit and to save.

But, if you have a severe chronic condition that requires on-going medication, for example, or if following a healthy lifestyle just isn’t your thing, then medical cost sharing would not be a fit.

To illustrate this point further, let’s compare the savings of medical cost sharing versus insurance in three common scenarios:

Scenario #1: The average-income family who needs a safety net, but struggles to afford it

So many American families are in this boat.

They’re educated, married, have children and good jobs and work hard to make a decent living.

Yet, they struggle.

They know they need to save more money for retirement, for college, to buy a home, to have an emergency fund, to take a trip, to care for aging relatives, etc.

Yet the cost of healthcare drains their budget every single month.

Sure, their employer may offer coverage, but that still leaves them with the high deductible, the out-of-pocket expenses and a portion of that premium which averages $18,764 for a family (!)[note]https://www.kff.org/report-section/ehbs-2017-section-1-cost-of-health-insurance/[/note], to pay out-of-pocket.

OR, their employer only covers their employee (not their family) or doesn’t offer any coverage at all. Which sticks them with a hefty monthly bill.

Again, that $18,764.00 for a family of 4[note]https://www.kff.org/report-section/ehbs-2017-section-1-cost-of-health-insurance/[/note] breaks down to $1564.00 per month before deductibles, etc.

Now, let’s say that family decides to switch to a medical cost sharing program, like Knew Health Community.

Using the 30-50% average savings, that would bring their annual expenditures down to between:

  • 30% savings: $13,134.80 saved annually or a new monthly payment of $1094.50
  • 50% savings: $9382.00 saved annually or a new monthly payment of $782.00

With this extra cash in their pocket, this family now has the freedom to save more and make healthier choices, such as buying organics, joining a fitness program, prioritizing the preventative care that most resonates with their family, etc.

All of which will continue to reduce their future healthcare costs.

And they have their safety net handy, if and when a medical issue arises.

Scenario #2: The independently employed (and uninsured) health professional

We’re calling out health professionals specifically, because so many of them (naturopaths, chiropractors, health coaches, nutritionists, acupuncturists, dietitians etc.) opt out of insurance to save money while they get their practices up and running.

And who can blame them with the amount of student debt most doctors and healthcare workers incur?

Plus, if you’re a health professional you’re unlikely to utilize much of what insurance plans offer (medications, frequent doctor visits, flu shots, etc.).

Unfortunately, even super-health-conscious people are not exempt from the unexpected.

And deep down you know it would only take one car accident/bike accident/skiing accident, etc. to lead to financial ruin.

This presents a conundrum for budding entrepreneurs in this new era of health care:

Can you afford to risk it and “hope for the best”?

Fortunately, medical cost sharing presents an excellent option for people in this scenario.

Since we’re not bound to the”sick care” model in the form of frequent doctor visits and disease “management”, you don’t pay what the “average” person pays for with insurance.

Rather, you pay your chosen monthly share amount—which ranges from $500-$1500—and you have a community to share any unexpected medical expenses that come up.

Plus, once your practice gets up and running, cost sharing is a benefit you can offer your staff and share with your patients.

Scenario #3: The spouse or single mother who needs an affordable plan

In the “old days” it used to be that one spouse’s employer-sponsored health insurance plan covered everyone in the family.

Not so anymore, as many companies have been forced to limit coverage to employees-only.

That puts many couples and families in a bind.

Then there are single mothers (and fathers) who either cannot afford employer-sponsored coverage for their families, or don’t get coverage through work.

In either scenario, medical cost sharing is an attractive option.

For uninsured spouses and children, it means not paying top-dollar for a second health insurance plan. Which can save you tens of thousands per year.

Single mothers and fathers can enjoy the same savings. PLUS with Knew Health Community you get community support—which is a big bonus for single parents strapped for time.

Depending upon the cost-sharing plan you choose, this community support could include:

  • A billing concierge—to negotiate rates and take care of all your billing details. Included with all plans.
  • Access to Teladoc—a 24/7/365 service that immediately connects you with a doctor when you need it. This can avoid a variety of emergency and routine trips to the doctor and give you peace of mind.
  • A personal Health Coach—to help you address any health concerns and/or help you establish a healthier lifestyle. Included with all plans.
  • Referrals to our network of functional medicine physicians—for when unexpected ailments come up that need root cause investigation.
  • Community support—via Knew Health Community’s LIVE health talks, content, social media groups and local events and resources. Included with all plans.
  • And more to come…

As you can see, not only can cost sharing provide incredible value in terms of monthly/annual cost savings and shared expenses when you need it, but it also offers unbeatable community support to help you stay healthy.

These are just three scenarios that are common among our founding members.

We consider individuals, families and companies for membership who are dedicated to a healthy lifestyle and accepting personal responsibility for their wellness creation.

Their reward for making those health choices?

Significant cost savings on healthcare vs. traditional insurance coverage, typically 30-50%.

Plus, they get to be part of a like-minded community who are working together to stay well – and will have their back when unexpected medical expenses come up.

A win-win-win.

Curious if medical cost sharing could save you money on healthcare?

Thanks to new laws, you now have a choice when it comes to your healthcare:

  • Keep paying a fortune for traditional insurance
  • Risk it and opt for no insurance
  • Or, learn more about medical cost sharing

The old system isn’t working for the majority of Americans anymore.

It’s expensive, it’s complicated and as a sick-care incentivized system, it’s not set up to serve healthy people.

If you’re ready for a KNEW system, one that’s affordable, transparent and Health Care incentivized, then stay tuned as we roll out more details and visit our founding member registration page to learn more.

-The Knew Health Team

<a href="https://knewhealth.com/author/joshua-rosenthal/" target="_self">Joshua Rosenthal</a>

Joshua Rosenthal

Author

Joshua Rosenthal MScED is a visionary in health and wellness. He is founder of the Institute for Integrative Nutrition, an online higher education school where students are trained as Health Coaches. Founded in 1992, the school has a global community of 100,000 graduates in 155 countries worldwide. Joshua is the author of many books and holds a Masters of Science degree in Education.