Picture this: You’ve just canceled your traditional health insurance. The expenses were too high, the coverage too confusing, and as someone with a small business, the costs were eating into your budget. It’s a big relief but also scary, and you’re wondering what comes next. That’s when a friend starts talking about health sharing—a different kind of safety net that’s piqued your curiosity. She says health shares have been around for decades, but you’ve never heard about them until now. The concept sounds appealing, but you’re not one to jump into something new without knowing all the details. Before you make the leap into the health share community, you’re determined to get the facts and figure out if it’s the right move for you.
The Core of Health Sharing – What is it?
Health sharing, sometimes called “medical cost sharing,” is a community-based approach to covering medical expenses. Therefore, it is an alternative to traditional insurance that removes insurance companies from the entire process. Instead, health sharing serves as a cooperative model. Essentially, the members of the health share pool their money together through monthly contributions. Then, a member can submit a claim when an unexpected medical event occurs. The community will share their medical bills after the Initial Unshareable Amount (IUA) has been met using the community funds.
Although health sharing is still a new concept to many, it has been around for a long time. It originated years ago within Amish and Mennonite communities and began expanding in the 1980s with the growth of large, Christian-based healthcare-sharing ministries. While the idea has evolved, the core purpose remains the same: for the community to help ease the financial burden on individuals during times of need. Today, faith-based health shares continue to exist alongside others that focus on shared values, such as wellness.
How Health Sharing Works
Each member of a health share contributes monthly payments into a communal fund to cover each other’s eligible medical expenses. A set of established Guidelines is generally in place and agreed upon by each member before joining. The guidelines will outline shared principles and establish what expenses can and cannot be shared by the community. Before joining, members must decide on their monthly contribution to determine their Initial Unshareable Amount (IUA). An IUA can range anywhere from $500 to $5,000, which is the amount that the member is responsible for paying when an unexpected medical event or pregnancy occurs. The eligible costs that exceed that amount are then shared by the rest of the health sharing community using the community funds.
The process itself is often simple. When members have an unexpected injury, illness, or pregnancy, they submit their bills to the health share organization, which acts as a facilitator. If approved, the community shares the costs using the pool of contributions. Bills are typically submitted in an online portal, and claims are paid in as little as a week or two.
A significant difference between health sharing and traditional insurance is that the member works directly to pay the doctor in a health share. He presents himself as a self-pay patient and pays the medical bills directly. The health share will either reimburse the member after the service has been provided or, for larger bills, will provide the funds beforehand. The health share company will often negotiate the medical bills on behalf of the member. Paying promptly, applying self-pay discounts, and bill negotiation are all effective ways a member can significantly lower the overall cost of the bills that the health sharing community will share. This commitment to reducing the costs for the community as a whole is what makes health sharing efficient and sustainable.
Here’s a great video to explain health sharing more clearly: https://www.youtube.com/watch?v=RALSY9Pzb-M
Advantages of a Health Share
There are several reasons why people join health sharing communities. Here are the top reasons:
Cost
Contributing to a health share is often much more affordable than traditional health insurance. Plus, members save even more each month with no copayments or coinsurance to worry about when seeing the doctor or filling prescriptions. Prices differ depending on a Member’s age and household size. This information can usually be found on the organization’s website.
Flexibility
One reason many people choose to be part of a health sharing community is the flexibility of choice. Because there aren’t any networks, there are never restrictions on which doctors you can see. Members can typically see any practitioner of their choice, regardless of location.
Community
The members of a health share community often have more in common than simply sharing in each other’s medical costs. Most health share organizations are comprised of a community of like-minded folks with similar beliefs, which can range from faith-based to a commitment to healthy living.
Simplicity
While health sharing is usually new to most, it doesn’t take long to realize that it’s a very straightforward process. Eliminating many complexities associated with administrative costs and billing insurance companies simplifies the process.
Alternative Options
Many health sharing organizations will share the cost of alternative treatments such as functional medicine or holistic care. Traditional Insurance does not always cover alternative practitioners or treatments.
Limitations and Considerations
The advantages of health sharing are clear; still, some individuals may not be a great fit for a particular health sharing community. Each organization has some differences, so it is vital to research and consider your needs. Those with significant medical needs may find traditional health insurance a better fit. Some pre-existing conditions can limit sharing in the first year or more of membership, and others allow for a phase-in of sharing for those needs. Some health sharing organizations will deny sharing in pre-existing conditions entirely, so it is essential to read and become familiar with the guidelines to know for sure. Additionally, a few states still have requirements for health insurance, and a health share does not meet that requirement.
Who Should Consider Health Sharing?
Health sharing has proven to be an ideal option for many people. However, as previously stated, it’s important to note that it is not a perfect option for everyone. The best candidates to consider health sharing are:
- Self-employed, business owners, or freelancers
- Generally in good health
- Seeking alternative kinds of healthcare
- Under the age of 65
- Not eligible for an income-based tax credit
How Knew Health Goes Above and Beyond for the Community
Now that you know the advantages of health sharing, it’s time to compare your options and choose the one that suits you best. While many health shares are available, only a few genuinely redefine the concept in meaningful ways. Knew Health is a great example, offering all the essential features of a traditional health share and added benefits like preventive care and general wellness. By combining these core elements with innovative perks, Knew Health’s membership stands out from the rest. Apart from the peace of mind they get when the unexpected happens, members of Knew Health will also have the following available to them:
- personalized, free health coaching
- sharing for preventive services
- medical cost sharing for large, unexpected healthcare costs
- 35% discount on thousands of supplements
- free and discounted lab work
- 24/7 telemedicine
- medical bill negotiation services
- annual allowances for additional preventive health services
- and more!
Final Thoughts
Ultimately, everyone’s medical and wellness journey is their own. It is up to each individual to determine what will work best for them and their family. Whether traditional health insurance or an alternative like health sharing is the best solution, staying educated on all available options is important to make an informed decision. If you think the Knew Health community might be the solution you’re looking for, schedule a call today with a member of our team and discover for yourself. We can also be reached at 855-542-0050 or by email at [email protected]. We hope you’ll take the leap and join our community today!
Disclaimer: As a reminder, Knew Health is not health insurance.
