Mornin’, folks!
It’s officially November, and that means it’s pumpkin spice, crunchy leaves, annnnnnd open enrollment season. 🎃
If thinking about opening your company’s HR pamphlet gives you a serious case of sweaty palms, OR health insurance is not offered at your work, it may be time to consider an alternative.
At Frugal Friends, we like to use healthcare sharing as a means of providing coverage for our families.
With numerous options and flexibility for individuals, it’s a serious win for those struggling with traditional health insurance.
🩺 Healthcare Sharing: The Basics
Healthcare sharing is a way for individuals to share the cost of medical expenses within a group, generally a non-profit ministry. It works by the individual paying in a “share” amount (similar to a premium) and an “annual unshared amount”, that goes towards your own expenses.
Similar to monthly premiums, the higher the share amount you sign up for, the more expenses/people are covered. The share dollars you contribute will go toward the good of the whole–those that have had procedures can request for the money in the pool to cover their bill.
However, coverage must be approved by a committee prior to use. The annual unshared amount is similar to a deductible–before you can request $$$ from the share funds, you gotta max out the fund.
Many healthcare sharing options are run by Christian organizations, and may require an attestation of certain beliefs/values. However, there are also great options that are not religiously affiliated.
🔍 Who It’s For
Healthcare sharing is a fantastic resource that’s helpful to those with limited access to health insurance. Whether you work at a small company that can’t afford to offer medical benefits or you’re a business owner, you’ll want to consider healthcare sharing. There’s no employment status required, either, so this is ideal for stay-at-home parents.
⛔ Who It’s Not For
Healthcare sharing is targeted toward healthy individuals who do not visit the physician frequently. For those with chronic health conditions that require regular medications and procedures, it’s better to go with traditional health insurance.
Similarly, if you have a pre-existing condition, this may disqualify you from healthcare sharing.
💡 Pros & Cons
✅ There are plenty of reasons why we love healthcare sharing! A few of our favorite reasons are listed below:
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Affordability. Without expensive premiums, your budget will have breathing room.
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Flexibility. You decide how much you pay into your share account each month, and the level of upfront medical costs you’re willing to pay.
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Savings. In addition to the money saved with a healthcare sharing plan, we also found an option that allows you to open an HSA (Health Savings Account). Previously reserved as a benefit only for people with traditional, high-deductible insurance plans, HSA for America offers a healthcare sharing plan AND an HSA option🎉. So you no longer need to be excluded from this great investment account if you don’t have medical insurance!**
❎ Just like anything, there are a few cons to HCSM’s, which we’ve listed below:
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Coverage. HCSM’s are not insurance and coverage is not guaranteed. There is no one policy to adhere to, as it’s decided by a committee what will be covered and what won’t.
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Procedures. Some procedures & preventative care aren’t covered depending on the healthcare sharing plan, and many healthcare sharing companies will not cover costs if they do not align with company values.
In conclusion, it’s important to find your radical middle with healthcare!
Spending is a skill and you can learn to master it. If you’ve ever struggled with being unable to stick to a budget or felt guilty about spending on something you enjoy, Jen and Jill’s upcoming book is going to be your next favorite read.
Grab your pre-order gifts. Free With EVERY pre-order. 🥳
All the best,
Kim
⭐️⭐️ P.S. Want to share all this goodness with your friends AND earn cool Frugal Friends merch?
**Means this is a sponsored or affiliate section. We may earn a small fee or commission when you choose to try one of our sponsor or affiliate partners. But opinions are still 1000% our own.
