Health Sharing Explained: Is It Right for You?

Picture this: You've just canceled your health insurance. The expenses were too high, the options 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.

Health sharing, sometimes called "Medical Cost Sharing," is a community-based approach to sharing medical expenses. Therefore, it is an alternative to health 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 their Medical Needs when an unexpected medical event occurs. The Community will share eligible 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. It's important to understand that health sharing is NOT health insurance – it's a Community-based alternative approach.

Each Member of a health share contributes monthly payments into a communal fund to share each other's eligible Medical Needs. 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 may be eligible for sharing by the Community. Before joining, Members must decide on their monthly contribution to determine their Initial Unshareable Amount (IUA). An IUA can be $1,000, $2,500, or $5,000, which is the amount that the Member is responsible for paying when an unexpected medical event or pregnancy occurs (with a maximum of 3 IUAs per year). The eligible costs that exceed that amount may then be 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 as eligible for sharing, the Community shares the costs using the pool of contributions. Bills are typically submitted in an online portal, and Medical Needs are often processed in as little as a week or two.

A significant difference between health sharing and health insurance is that the Member works directly to pay the doctor in a health share. They present themselves as a self-pay patient and pay 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 when eligible. 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 may be eligible for sharing by the health sharing Community. 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

There are several reasons why people join health sharing Communities. Here are the top reasons:

Contributing to a health share is often much more affordable than 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.

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.

The Members of a health share Community often have more in common than simply sharing in each other's Medical Needs. 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.

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.

Many health sharing organizations will share the cost of alternative treatments such as functional medicine or holistic care when eligible. Health insurance does not always include alternative practitioners or treatments.

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 health insurance a better fit. Some pre-existing conditions can limit sharing eligibility 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 not share in pre-existing conditions at all, 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 since health sharing is NOT insurance.

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

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 eligibility for preventive services
• Medical Cost Sharing for large, unexpected healthcare costs
• 35% discount on thousands of supplements
• free and discounted blood work
• 24/7 telemedicine
• medical bill negotiation services
• annual Self-Care Credit for additional preventive health services
• and more!

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 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. Remember that health sharing operates differently from insurance and doesn't guarantee that all Medical Needs will be eligible for sharing. 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 hello@knewhealth.com. We hope you'll take the leap and join our Community today!

Disclaimer: As a reminder, Knew Health is not health insurance.

Author

Kimberly Hirsch resides in southern New Hampshire with her husband and two sons. She graduated with a Bachelor of Arts in Education from Providence College in Rhode Island and a Master's degree from the University of Phoenix, Las Vegas. Kimberly taught elementary school for ten years and spent eight wonderful years as a stay-at-home mom raising her boys. She is currently a content writer and children's book author. She has published four children's books and has plans to publish many more in the future. When she isn't writing, Kimberly can be found taking combat and weight lifting classes at the gym, baking healthy snacks, reading, doing author visits at local schools, and being a boy mom.