Medical Cost Sharing Plans: What You Need to Know
Finding that traditional health insurance costs too much for you? Tired of paying for benefits that you don’t use or believe in? It may be time to consider a Medical Cost Sharing Plan instead.
Medical cost sharing plans, also known as health sharing plans, are a viable alternative to traditional health insurance. These plans allow individuals and families to share medical expenses among a community of like-minded individuals who have similar beliefs and values. These plans have gained popularity due to their affordability and flexibility.
How Do Cost Sharing Plans Work?
In a healthcare cost sharing plan, members contribute a monthly “share” instead of paying a premium. These shares are then used to cover the medical expenses of the members within the community.
When a member incurs a medical expense, they submit a claim to the plan administrator. The administrator reviews the claim and verifies its eligibility based on the plan guidelines. Once approved, the eligible expense is shared among the members. Each member’s share is allocated to cover the expense, ensuring a fair distribution of costs. This sharing process reflects the principle of community support and solidarity within health cost sharing plans.
Why Do People Choose Health Cost Sharing Plans?
There are a number of key benefits to Medical Sharing Plans which is why more people are choosing them than ever before.
- Affordability: Cost sharing plans often have lower monthly costs compared to traditional health insurance premiums, making them an attractive option for individuals and families on a budget. They also appeal to people with a higher income that don’t receive any tax breaks on traditional health insurance and find the premiums too high for the benefits they use.
- Flexibility: Unlike traditional health insurance plans, health cost sharing plans are not bound by strict networks or provider restrictions. Members have the freedom to choose their healthcare providers and facilities.
- Shared Responsibility: With medical cost sharing plans, the financial burden is shared among the members of the community. This promotes a sense of solidarity and community support.
- Exemption from ACA Penalties: Members of recognized health cost sharing plans are exempt from penalties associated with the individual mandate of the Affordable Care Act (ACA).