Exploring the Concept of Health Sharing Ministry

Health care sharing ministries are nonprofits that pool members' monthly payments to pay for their medical bills. While they fulfill some of the same functions as insurance, they're not regulated like insurance and lack many consumer protections.

Liberty's Beerses and Fabris traveled to pitch their plan to churches, fraternal groups and conservative political gatherings. They thrived in a regulatory no man's land where state insurance commissioners look the other way and law enforcement settles for paltry civil settlements.

Sense of Community

A sense of community is a societal-level factor that has been linked to improved health and quality of life (Davidson & Cotter, 1991; Glynn, 1974). People with strong senses of community are more likely to engage in healthy behaviors like regular physical activity and good nutrition.

Most healthcare sharing ministries are religiously based and require members to adhere to a specific code of conduct. For example, some groups prohibit the use of tobacco or alcohol and may exclude members who do not comply. Others are based on a particular faith and may not pay for medical expenses that are against the beliefs of the organization.

Those who join these groups are typically looking for a more affordable alternative to traditional insurance. Membership fees can be up to 50% lower per month than the average monthly premium for a marketplace plan under the ACA. Most HCSMs also offer the flexibility to choose their own doctors and hospitals without being restricted by networks.

Low-Cost Alternative

As premiums have increased on ACA-compliant plans, many families are seeking alternatives. One such option is the health care sharing ministry (HCSM), a non-insurance company that pools member contributions to help pay medical bills.

HCSMs are generally less expensive than ACA-compliant coverage, especially for those not eligible for premium subsidies on the exchange. However, they do not have the consumer protections that come with real health insurance.

To join, members contribute a fixed monthly amount into their account that is then used to share in other members' medical costs. Only eligible medical bills are shared. These include things like hospitalizations, surgeries and prescriptions. However, some HCSMs have restrictions on what is considered eligible.

Because HCSMs are not bound by ACA requirements, they can be more selective in who they accept as members, potentially saving their entire membership money. This, in turn, helps keep monthly costs down. This can be appealing to those who want the flexibility to choose their doctors without having to worry about in-network or out-of-network costs.

Helping Others

Health sharing ministries are not insurance plans, but rather faith-based, non-profit 501(c)3 organizations that share medical expenses with members. Most healthcare-sharing ministries are Christian and follow Galatians 6:2 — "Bear one another's burdens, and so fulfill the law of Christ."

These groups coordinate voluntary monthly financial contributions from their membership in an effort to help cover each other's medical expenses, thus acting as a cost-sharing alternative to traditional health insurance. While a majority of the 108 known and active health sharing ministries are Christian-based, you don't have to be of that faith to join.

The sense of community within these groups is a major reason why many Americans choose them over traditional insurance. They also provide a low-cost alternative and offer an exemption from the Affordable Care Act's mandate to carry health insurance (although that penalty has now expired). Despite these benefits, there are some important things to consider when choosing between a healthcare-sharing ministry and other coverage options such as Marketplace/"Obamacare" plans or Medicaid.

No Protection for Pre-Existing Conditions

While some healthcare sharing ministries have rules that cover pre-existing conditions, many don't. These plans don't have to comply with ACA regulations, so members don't have the same legal protections if they don't receive a payment or the plan goes bankrupt.

Health care sharing ministries (HCSMs) have become a popular alternative to traditional health insurance. They encourage people who follow a common set of religious beliefs to contribute monthly payments to help cover each others' medical expenses. Some HCSMs match paying members with those who need funds for medical bills, while others gather their monthly shares into a pool and pay eligible claims.

Unlike ACA-compliant health insurance, HCSMs don't have to follow federal regulations, and they can choose to decline coverage for procedures that go against their faith or religious principles. For example, a number of HCSMs don't pay for birth control or substance abuse treatment. Some impose restrictions on treatment for certain pre-existing conditions, including requiring members to share in a specific amount for the condition or paying only a small percentage of the bill.