HealthShare Plans
So, What Are Healthshare Plans?
Healthshare plans, also referred to as healthcare sharing plans, or faith-based plans, are designed to essentially perform the same important service a health insurance plan provides - financial protection from unexpected medical costs.
Note that eventhough these plans function in a manner that is similar to health insurance, a healthshare plan is not an insurance plan. This distinction makes
it possible for healthshare plans to be structured in a manner that can be quite different than a typical health insurance plan.
Good to know: Ask whether tests, prescriptions or procedures are really necessary. The latest drugs aren't always better than older, cheaper drugs - just more expensive. If you tell the doctor you're paying cash, he/she may suggest you wait to see if the condition resolves before ordering an expensive test. Instead of paying for 20 sessions of physical therapy, pay for one and learn exercises to do at home.
How healthshare plans work.
To put it simply, healthshare plans are about like-minded people voluntarily coming together to share the burden of medical expenses. Healthshare plans are typically faith-based -
meaning the core concepts are based upon religious beliefs. However, in most cases, consumers do not need to be affiliated with any religious group, or be religious at all,
in order to purchase a healthshare health plan.
Usually, funds to pay medical bills are dispersed within the same community that the member resides. In other words, membership dues collected from plan members living in New York,
will be used to pay for medical costs that arise for residents of New York.
Healthshare plans are designed to accomplish the same fundamental goals as traditional health insurance:
- Help people maintain good health by offsetting the costs of health care access.
- Assist people with the cost of medical bills.
- Protect people from catastrophic financial loss due to major medical expenses.
Good to know: If your family is healthy and doesn't visit the doctor often, a high-deductible health plan could save you hundreds of dollars in lower monthly premiums. In addition, most high deductible health insurance plans are HSA eligible. An HSA eligible plan qualifies you to open a health savings account (HSA). A health savings account is designed to work in concert with a your high deductible health insurance plan. You can save money in your HSA account before taxes and use the funds to pay for eligible health care expenses. Additionally, unused HSA funds continue to grow tax-deferred, year after year.
The Relationship Between Healthshare Plans And Healthcare Providers
Surprisingly, many healthcare providers have embraced healthshare plans as a viable partner. The reason is simple. It saves them money.
Some physicians have noted that there are far less overhead costs when working with a patient covered by a healthshare plan, as opposed to an insurance policy. Physicans often avoid mounds of insurance paperwork
when working with a healthshare company.
Additionally, healthshare plan companies offer fewer headaches for healthcare providers because in many cases,they don't require providers to be part of a specific network.
Benefits of HealthShare Plans
-
Lower Monthly Payments
Let's start with the obvious. Because healthshare plan companies usually pay much quicker than insurance companies, they are able to negotiate lower costs for their medical needs. For this reason, the average monthly payment you would be expected to pay under a healthshare plan is likely to be substantially less than a benefits comparable insurance plan.
This means that you don't have to worry about breaking the bank to pay for your family's insurance. This is especially true if you have four or more members in your family.
-
Lower Deductibles
Because healthshare plans technically don't have deductibles, you actually won't be paying a deductible at all. Instead, you will be paying a similar fee, called an "annual portion", or "Member Shared Responsibility Amount". The amount is the medical costs a member must bear before plan benefits kick in. This amount tends to be lower than the deductibles within a comparable traditional insurance plan.
-
No Enrollment Period
One reason why many families opt for healthshare plans is because they offer any-time enrollment. This means that you don't need to wait for an open enrollment period to gain health insurance. Instead, individuals can simply sign up for the plan they wish and begin their coverage.
Most importantly, members of healthshare plans receive quicker access to healthcare. This option has proved attractive to thousands of families across the United States who are looking for a quick and effective way to cover their healthcare.
Many consumers like knowing that they will never have to worry about missing an open enrollment period. The convenience of simply choosing a plan and going with it, has helped grow healthshare plans into the phenomena they are today.
Good to know: Read bills carefully. Up to 50 percent of your doctor or hospital bills may contain mistakes that end up costing you money, says Jane Cooper, president of Patient Care, a consumer advocacy group in Milwaukee. Something as simple as an incorrect billing code could prompt your insurance to pay less than expected or even reject your claim. Other common errors: mistakes in an account number, claims with incomplete information - even claims sent to the wrong insurance company address by a doctor. Read your benefits booklet carefully to make sure your plan is paying all it should. If you catch an error, send a certified letter to your insurer. Follow up in a few weeks to make sure the mistake is corrected.
courtesy of
Parents.com
Conclusion
Healthshare plans are an increasingly-popular alternative to traditional insurance plans.
For over a million Americans looking to find ways to secure quality healthcare without paying exorbitant premiums and deductibles, healthshare plans have become a red-hot alternative.
By negotiating cheaper costs with healthcare providers, and by making prompt cash payments, these healthshare plans significantly lower costs for all involved.
If you're considering a healthshare plan, keep in mind that they are not for everyone. They typically have strict application guidelines and some significant benefit limitations.
Be sure to thoroughly understand the benefits and limitations of a healthshare plan - or any health care plan that you are considering purchasing. Questions? We are here to help!
Other articles: Is Short-Term Health Insurance Right For You?
Finding Short-Term Health Insurance.
So, What Is Faith-Based Health Insurance?
Resources