Healthsharing plans are gaining traction as a cost-effective alternative to traditional health insurance, offering significant savings, particularly for individuals, families in good health, and small employers without large subsidies under the Affordable Care Act (ACA).
The Potential Savings of Healthsharing
Health insurance costs have surged, with individual and employer-sponsored premiums climbing steeply. In 2023, an unsubsidized ACA silver plan cost an average of $541 monthly for individuals and $1,362 for a family of three. Employer contributions to these premiums can be substantial, yet employees still face hefty deductibles.
Health insurance premiums are high due to various factors, including the rising cost of medical care, inflation, expensive medications, and the broad coverage mandates of traditional insurance plans, which often include services many people may not need.
Compare Pricing on the Best HealthShare Plans Available
The Potential Savings of Healthsharing
Health insurance costs have surged, with individual and employer-sponsored premiums climbing steeply. In 2023, an unsubsidized ACA silver plan cost an average of $541 monthly for individuals and $1,362 for a family of three. Employer contributions to these premiums can be substantial, yet employees still face hefty deductibles.
Health insurance premiums are high due to various factors, including the rising cost of medical care, inflation, expensive medications, and the broad coverage mandates of traditional insurance plans, which often include services many people may not need.
How Healthsharing Plans Reduce Costs
Healthsharing plans offer a leaner approach by excluding or limiting coverage for services like substance addiction treatment, gender reassignment surgery, and other specific medical services. By focusing on a membership that adheres to healthier lifestyles or religious principles, these plans can offer lower costs through a better risk pool.
Members of healthsharing plans can see savings of 30 to 40 percent compared to unsubsidized traditional health insurance premiums. For example, where individual ACA plans might cost $541 per month, healthsharing plans could offer similar coverage for under $350. For families, the savings are even more considerable, with costs under $750 compared to the ACA’s $1,362 average.
Additional Benefits and Considerations
Healthsharing plans provide flexibility in choosing healthcare providers and often negotiate cash payment discounts, further reducing medical expenses. However, these plans are not suitable for everyone, especially those with pre-existing conditions or specific ongoing medical needs, as there may be limits on coverage. Prescription drug coverage is typically limited to negotiated discounts rather than direct coverage.
For small business owners, healthsharing presents an opportunity to manage healthcare costs effectively without the obligation to provide traditional insurance under the ACA for businesses with fewer than 50 full-time employees.
In Summary
Healthsharing plans represent a significant shift in managing healthcare costs, offering substantial savings for many individuals and businesses. While not a one-size-fits-all solution, for those in good health and without significant medical needs, healthsharing could provide a financially viable alternative to traditional health insurance.
