How the Cash Economy Can Save Medicine (and your healthcare budget)

As we've been preparing for the Knew Vision Tour and putting together the framework for Knew Health Cooperative , we've been thinking deeply about why healthcare has become so overwhelming for families like yours.

After all, just a few years ago, finding affordable healthcare felt much more achievable than it does now.

For example, in Arizona, government-subsidized "silver" health insurance monthly contributions increased 116% from 2016 to 2017. An increase that many are still feeling as insurance subsidies continue to change.

116% in just one year!

And that's just one example of government-subsidized insurance contribution increases in one state. We understand how frustrating and scary these numbers can feel.

A lot has shifted in our healthcare landscape.

Chronic conditions have grown at a rapid rate in the last two decades, and the Affordable Care Act hasn't exactly succeeded in making things more affordable for most families.

There's no denying that cash has become king when it comes to saving money on healthcare, especially for those with high-deductible insurance plans.

This actually creates an opportunity for you to save money while taking back control of your family's healthcare choices.

These days, you typically get the lowest possible price on healthcare treatments and procedures when you pay cash.

Thanks to increased awareness about this topic, both individuals and doctors are becoming savvy about these savings.

This is why you're seeing the rise in new models like direct primary care practices—where doctors are paid directly by patients for services or Membership-based programs—and direct-pay labs which offer significant discounts on direct-to-patient blood work.

For those with high-IUA plans, paying cash will often cost thousands less than paying toward their Initial Unshareable Amount for the insurance company's "contracted rate".

Ultimately, paying the cash price saves everyone the most money.

Through our sister company, The Evolution of Medicine, we've heard countless stories from doctors barely making ends meet or going out of business because of insurance companies.

Lengthy reimbursement times, withdrawn payments, having to fight for every penny owed—for many doctors, taking insurance is no longer sustainable for their practice.

Which is why many clinics have transitioned to a cash-based or hybrid system.

This benefits the doctors—because they can spend more time and resources on helping patients—and benefits you as it allows doctors to offer better prices for cash-paying patients.

How many times have you been told, or heard about people being told by insurers: "that procedure is not covered" or "that doctor visit was not medically necessary"?

In that scenario, insurance companies dictate value. Even if it means you don't get the care you need.

In a cash economy, you have the power to determine what's valuable and necessary for you and your family's health—not the insurance company.

For example, if you knew you'd have to pay $2,200 to spend 10 minutes with a doctor who doesn't offer you a sustainable solution to your health concerns, you'd likely seek other options.

Instead, you could choose a functional medicine doctor who charges $300-$400 and spends an hour or more with you, providing a custom health plan and addressing root causes.

Cash gives us tremendous power in choosing services that offer real value to people, NOT to insurance companies.

At Knew Health Cooperative, our model harnesses the power of the cash economy by allowing Members to direct their own care and giving doctors the cash flow they need to serve their patients well.

Here's how it works:

• If you have a Medical Need, you're entrusted to choose your own provider and services based on your knowledge of their quality of care and fees.
• You pay the provider their cash rate, then submit your Medical Need for Community sharing eligibility.
• The Community as a whole benefits from your good sense of value and the cash rate, the doctor benefits from getting paid immediately, and you benefit when your Medical Need is eligible for sharing.
• Everyone gets on with their lives.

Beautifully simple, right? That's the power of cash and Community working together to help you save serious money.

Important Note: Knew Health is NOT health insurance. We're a Medical Cost Sharing Community where Members voluntarily share in each other's eligible Medical Needs. You can have up to 3 IUAs (Initial Unshareable Amounts) per year of $1,000, $2,500, or $5,000. Plus, Members receive a Self-Care Credit to use toward wellness and preventive care.

-The Knew Health Team