You may have heard of Medi-Share or Samaritan MinistriesTM. Both are healthcare sharing (HCS) organizations that have a community of members that join together for the purpose of sharing one another’s healthcare expenses. Both HCS ministries have been around over 20 years and have tens of thousands of satisfied members. HCS ministries are specifically recognized by the Affordable Care Act. The law even provides an exemption from penalties for not having insurance for individuals who participate in a bona-fide HCS ministry.
Since the Affordable Care Act was signed into law on March 23, 2010, HCS participants have grown in number from approximately 100,000 members to over 700,000 members today! Why has this solution to pay for medical services grown over seven fold in the past 6 years? Well, there are a number of reasons. Here are a few:
What is really exciting in the HCS world is there is now a solution for employer sponsored group plans! All of the benefits above, and more, are now available on a group platform for employers to offer their employees.
Cost savings compared to traditional group health insurance can be dramatic as well as out-of-pocket savings to the member when they need to utilize medical services.
Here’s an example of how someone could receive medical care and how the bills go through the sharing process.
Here’s how the process works to share the expenses with the community.
This is obviously an oversimplification of the process but I wanted to provide a starting place to understand how it works.
There are a few points to keep in mind as well as understanding the difference in terms used for HCS vs. health insurance.
As described in the example above, another major characteristic is the ability of the administrator of the HCS community to negotiate the price the medical provider charges to the member for services received. This is the main ingredient that has allowed the HCS community to enjoy its success for more than two decades.
When a provider is able to receive payment for services without having to deal with an insurance company they are almost always more than willing to reduce the amount initially charged. It saves the provider money and they typically get paid much sooner than they do from an insurance company.
Again, there are a lot more details to be learned about HCS for your employees but it is at least worth your while to see how it might work for you and your team. Call us right away to set up a time to discuss further at (888)884-4574 or email me at firstname.lastname@example.org .
 Members of a health care sharing ministry – You are a member of a health care sharing ministry, which is an organization described in section 501(c)(3) whose members share a common set of ethical or religious beliefs and have shared medical expenses in accordance with those beliefs continuously since at least December 31, 1999. Source: IRS.gov