We’re all aware that healthcare can be very expensive. It gets even more expensive when you start paying the premiums of a health insurance plan.
Health insurance premiums are expensive – not everyone can afford them. However, when your health goes down the drain, you feel it’s better to have some form of security. We believe that you should not let costs be a barrier to healthcare. There are medical cost-sharing plans to safeguard you from future medical expenses.
How does this work? Is it beneficial for those who can’t afford to pay for health insurance premiums? What is the eligibility? We know you have lots of queries in your mind. The questions are ping-ponging across your brain, and we’re here to answer them all. This informative post helps you understand medical cost-sharing plans and how they are better than the usual health insurance plans.
Medical Cost-Sharing Is Not An Insurance Plan
Health-sharing plans are also called medical cost-sharing plans. They save you from paying a lot of money for healthcare. Some people have other family expenses and feel the insurance premiums are too expensive.
Medical cost-sharing plans also attract premiums but are not as expensive as health insurance premiums.
Medical cost-sharing is not insurance in the technical term because no legal document tells you that your medical expenses will be covered in the future.
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These cost-sharing plans are quite different from health insurance simply because they do not put an extra financial burden on you. We live in a fairly expensive world where everything costs a fortune. Education, basic needs of every day, and other expenses must be taken care of.
But that does not mean that healthcare is not crucial. You need to be covered for future medical expenses. Life is unpredictable – there will be a time you will face an accident and would need medical care. Your family may need it. Now that we know that life is quite short (after the Corona scare), it’s become even more important to secure your family’s future medical needs.
Medical cost-sharing is a breath of fresh air for families and individuals who cannot afford health insurance but need it to secure future medical costs.
Am I eligible for a cost-sharing plan?
You are eligible for a health care sharing plan but need to check with the organization whether you will be a good fit. Ideally, you should not have any lethal disease that would require expensive treatment. It’s a good plan for those who enjoy good health in general.
A health insurance plan guarantees that you will be paid X amount when you pay monthly premiums and require medical costs at some stage.
Health care sharing plans are given by organizations whose members share all the medical costs. There is no guarantee that you will be paid, but such groups work on an understanding.
Even in a medical cost-sharing plan, you have to pay a premium.
In some cases, there is also an annual unshared amount (it’s like a deductible). Monthly costs could be between $64 to $600 (depending on the plan). It’s a lower sum to pay as compared to expensive health insurance premiums. So, all the medical expenses are shared among the members of the specific organization.
It’s best for those who lack health insurance and lead a fit and healthy life. In case you need catastrophic coverage, then this plan is meant for you.
Health insurance premiums are not everyone’s cup of tea so you might consider this plan over others.
Here’s something you should know: most of these health-sharing organizations are religious-based. You might have to declare your faith to join the group, but in some cases, that might not be relevant.
Such groups will ask you about your lifestyle because they usually do not take in members who indulge in substance abuse, alcohol, and tobacco.
So, you can speak to the organization and see if you are a good fit. In case of any substance abuse issue or major health concern, you might want to find an alternative. In the case of serious illnesses, the organization may not be able to help you cover the medical expenses later on.
Since treating serious illnesses is expensive, you might want to save up and opt for health insurance instead. Medical cost-sharing is only for those who lead a healthy lifestyle but need some form of financial security for future medical expenses.