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Medical Sharing Plans: Know The Unknown

by Uneeb Khan

Have you ever noticed how much money you spend every year on healthcare? If yes, you might be quite surprised by the steep increase in medical costs each year. The cost of medical insurance has also gone too far beyond the reach of the average person. 

There are several healthcare plans, like sharing plans that make the burden of insurance a lot less hefty. But how do medical sharing plans work? If you are planning to get medical insurance and want to prevent spending unnecessary money, you better get your facts right about medical sharing plans. 

Digitization, Healthcare, Health

Basic of health share plan or HSP

Health share plans are programs that differ from normal medical insurance. They have a unique set of guidelines based on religion or faith that are shared by all the members of the group. It does not necessarily mean joining a cult but simply living by a certain lifestyle to keep the person morally and physically sound.

Reason for success

A health share plan has been a successful venture so far. But how did this happen? To speculate this, you need to have an idea of how HSPs work. Before entering a shared program, HSP involves a few unshared elements. Every person needs to pay some amount, like a premium which would be monthly. This would cover the annual unshared amount. 

It would not be accurate to refer to a health share plan as insurance. Even though it can replace health insurance, they are not synonymous, especially in the conventional sense. HSP can be seen as a group or a cooperative with a few members. The members enter the plan with the promise of covering the medical bills of one another. In simple terms, the people involved in the cooperative share any medical cost that may appear for any present member. 

The monthly dues paid by each member are used to cover the bills of every individual by the HSP. 

Who should get HSP?

If you are still confused about getting insured through a health share plan, knowing the type of people an HSP would suit might help you make up your mind. Individuals who have an overall healthy lifestyle but may have some harmless illness can get an HSP. It is like getting insurance that can help if the illness becomes chronic or disastrous. People who do not have a tax claim through their income can also opt for health share plans. Some companies offer healthcare plans for their employers. But if your company doesn’t, an HSP would be a splendid choice for you. It will help save a lot of money you might need to pay for traditional insurance coverages. 

Prerequisites for a health share plan

  1. The cooperative must not be based on profit. HSP features a non-profit organization. 
  2. The members of the cooperative need to be bound by some common belief or morals. 
  3. Employment levels of economic status should not be a unit of measuring the membership. 
  4. If a person develops a serious condition, the members are duty-bound to bear the costs. They cannot back out. 
  5. A grandfather clause is involved. 

Traditional v/s HSP

Traditional medical insurances differ from HSP in several aspects. Unlike HSP, medical insurance is always provided by profit-based companies. They stand to gain something by providing the public with insurance coverage. In a health share plan, the members can request their bills to get coverage, but insurance will work completely according to the policies. HSPs are not under the control of the state insurance department, unlike healthcare insurance. Members of an HSP are entitled to provide the required person with the money directly to cover the bills, which is not possible in a conventional insurance system. 

Advantages of health share plans 

  1. Cheaper than alternatives

If you have ever been to an insurance company looking to get healthcare insurance, you will know how high the rates are. Being profit-based companies, they will extract a lot of money from their clients. This is not a concern with a health share plan.

  1. Flexible processes

If you are wondering how medical sharing plans work regarding membership- The process of enrolling on an HSP is quite simple. Any interested person can join the cooperative during an open membership. This flexibility they offer is an appealing factor to many. 

  1. Flexible payment options 

HSP members get more control over how their treatments get covered. The payment methods and how it is carried out none of it follow a clear-cut way and are quite flexible. 

The Bottom Line 

Considering all the benefits, HSP can be a great option for enrolling in insurance plans. If the traditional insurance does not work out for you, there are always health care plans to turn to. Like any other venture, it is crucial to understand all the aspects of an HSP before insuring in one.

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