Health-sharing plans are lower-cost, affordable alternatives to traditional health insurance products that have the potential to offer relief to thousands of people who are looking for cost-effective health insurance options. However, many often misunderstand these plans. Hence, there are a number of misconceptions surrounding health insurance plans. In this post, we will address some of the most common myths about these healthcare plans.
Myth 1: Health Sharing Plans are Not Regulated
Though it is true that health-sharing plans do not normally fall under the regulatory purview of the insurance commission, it does not mean the members go without protection. These plans operate under every state’s general contract law. Each member will have an enforceable contract based on the plan’s guidelines.
When joining a health-sharing plan, the members have to sign an agreement specifying their responsibilities and those of the health-sharing organization. It also lists the procedures and expenses that are shareable and which ones are not.
Myth 2: You Can’t Contribute to an HSA if You Join a Health Sharing Plan
You can actually contribute to an HSA after joining a health-sharing plan. There are some health plans designed specifically to include the minimum essential coverages required for ACA. They are designed to qualify as a High Deductible Health Plan. So, once you enroll in a health-sharing plan and meet the other requirements, you will be eligible to contribute to an HSA.
Myth 3: Health Insurance is More Economical Than Health Sharing
Many people assume that health-sharing plans will cost more than traditional health insurance. However, the reality is that health-sharing plans are much more affordable than traditional health insurance.
For those in good health, with no significant pre-existing conditions and who do not qualify for a significant ACA subsidy to pay insurance premiums, health-sharing plans can save 40-505 of the cost spent on traditional health insurance policy. So, if you are committed to a healthy lifestyle, health-sharing plans can help you and your family save thousands of dollars per year.
Myth 4: Health Sharing Plans Cannot Provide for Major Medical Needs
It is often assumed that health-sharing plans do not have sufficient resources to provide for significant medical events. However, the reality is that these plans are structured to pool resources, hence providing an indicant financial reserve to help share the cost of major medical issues any member may face.
Myth 5: Medical Facilities Only Treat Patients with Health Insurance
Most hospitals recognize health-sharing plans and work with them as they do with traditional insurance companies. Some of them even prefer dealing with health-sharing plans due to their straightforward billing processes and prompt payment systems. Health-sharing plans also negotiate a cash price for services, thus saving more money.
Myth 6: Pre-existing Conditions are Not Allowed
Sharing for pre-existing conditions varies among plans. There is an initial waiting period before medical expenses can be utilized to cover pre-existing conditions. Some of these conditions may be immediately shareable if controlled with medication or if you show evidence that they do not present a current health risk.
Wrapping Up
It should now be clear that health-sharing plans are a great alternative to traditional health insurance programs. They allow members to customize their own health care. The flexibility they offer makes them a practical choice for many families.
Disclaimer: MPB.Health memberships are a non-insurance solution designed to provide access to healthcare services. To determine if this aligns with your specific needs, we recommend consulting a certified expert advisor.
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