Healthcare Sharing Ministries In North Carolina
Consumers are choosing faith based, healthcare sharing plans over traditional insurance in ever-increasing numbers. Why? In most cases, it boils down to flexibility, transparency and price.
So, what are healthcare sharing ministries?
Healthcare sharing ministries are non-insurance company entities that consumers from all walks of life are utilizing to manage the risk of unexpected medical bills. The plans offered by these companies are designed to work
very much like a traditional health insurance plan. The difference is, these plans are not governed by the ACA (Affordable Care Act) rules and regulations. This distinction makes
it possible for faith-based health plans to be structured in ways that are distinctly different than traditional ACA plans.
There are several advantages (and a few disadvantages) that are inherent within this distinction. This article will address both.
Want to see faith-based / healthcare sharing plans and rates now? Click here.
Good to know: Before purchasing a health plan, ask questions. Call the member services department of the health plan you're considering and ask: Which doctors, hospitals, clinics or pharmacies participate in the plan? How much does it cost to go out of network? Am I covered during a travel emergency? What is the premium and out-of-pocket costs? What is the most I'll have to pay out of my own pocket to cover expenses? Exactly what benefits are covered by the plan and what isn't covered? How are disputes about a bill or service handled? Then verify the information you were given by comparing it to the plan's benefit details.
The advent of faith-based / healthcare sharing ministries.
Healthcare sharing / faith based ministries have grown exponentially beyond what anyone could have possibly invisioned, when such ministries were exempted from the Affordable Care Act health plan requirements.
At the time, the exemption was a way to sooth objections from conservative leaning congressmen who had reservations on the passage of the ACA. This exempted niche, is now a fast growing segment
of the health plan industry. From all appearances, this trend will continue well into the foreseeable future.
What was once a fringe idea, limited to devout Evangelicals and rural churches, has found acceptance with a wide swath of the American populous.
How do healthcare sharing ministries work?
To put it simply, healthcare sharing ministries are about like-minded people voluntarily coming together to share the burden of medical expenses. These entities are typically faith-based -
meaning the core concepts are based upon religious beliefs. What most are unaware of however, is that in most cases, consumers do not need to be affiliated with any religious group, or be religious at all,
in order to purchase a faith-based health plan.
Usually, funds to pay medical bills are dispersed within the same community that the members reside. in other words, membership dues collected from plan members living in the North Carolina region
will be used to pay for medical costs that arise within the very same North Carolina region.
Healthcare sharing 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.
The mechanics.
In North Carolina, the workings of healthcare sharing plans offered by various entities are quite similar. Each month, all the members pay a set contribution or "share" amount. This contribution
is based on the health plan style they have purchased. Other factors that may contribute to what the contribution amount will be, are age, gender, and health history. Contributions are placed into a pool
and managed by the healthcare sharing company. The funds are shared with members who have immediate medical bills, according to their chosen plan and company guidelines.
Interesting Fact: In 2015, the Kaiser Family Foundation found that there were 1 million adults who declared medical bankruptcy. That is more than those going bankrupt for unpaid credit card debt or mortgage defaults. A 2013 Nerdwallet study found that almost 30 percent maxed out their credit cards, while 8 percent were forced into bankruptcy because the illness cost them their jobs.
Advantages of Faith-Based / Healthcare Sharing Plans.
Because Faith based health plans do not fall under Affordable Care Act regulations, there is enormous flexibility in plan structure. This is one of the factors that contribute to a lower
monthly premium, when compared to a traditional health insurance plan with similar benefits. Another contributing factor to lower premiums is the comparative lack of bureaucracy within entities
that offer faith-based health plans. Insurance companies have had over a century to build up a virtual mountain of bureaucracy. This stifling excess is invariably passed on to
the consumer, in the form of high plan premiums.
Also, the lack of bureaucracy, translates into your physician, medical facility, or hospital being paid much more quickly for services provided.
Consequently, medical providers generally like healthcare sharing plans.
Disadvantages
One big advantage of an ACA backed plan is you cannot be declined ACA coverage due to a health issue. Health care sharing companies can choose to decline coverage to any individual due
to medical issues or history. Also, certain ACA plan benefits are mandated by law. Some benefits, like maternity, for example, may be very important to you. Your faith-based plan may not offer it.
For more information on Faith-Based / health care sharing ministries, please contact us directly.
Good to know: Make sure you understand how your plan works. Keep those plan benefits documents handy and easy to find when you need them. They can provide great info on what you'll pay for different types of services, and what the rules of your insurance plan are - such as whether you need to choose an in-network primary care physician or if you need a referral to see a specialist.
Other articles:
Explaining the Growth of HealthCare Sharing Plans.
5 Strategies For Reducing Medical Bills.
Resources