Healthcare Sharing

[Wes]

Has anyone ever heard of a Health Care Sharing Ministry? A ministry where each member shares the medical expenses of others within the group. Examples of these are Samaritan Ministries and Medi-Share. I am currently self employed without insurance and was considering joining one of these ministries. I really like the concept. If you are a member of one of these or have heard any good testimonies or horror stories I would appreciate your input.

[free]

My dad passed away about 10 years ago...He was a pastor with no health insurance but he was a member of one of these programs. My families experience through his illness and ultimate death was great. They really do share the cost with everyone. I believe they work with hospitals and doctors to get reduced prices.

My mom even got some money after all of the bills had been paid. Hope this helps from one positive experience.

[Wes]

Do you happen to recall the name of the sharing ministry? I am leaning toward Medi-Share.

[TW]

These are the same as "mutual insurance companies," such as Mutual of Omaha. As a member you become liable for a percentage of all debts incurred. The difference is that these ministries are "not for profit," where as the insurance companies are "for profit." They (the insurance companies) take your insurance premiums and "invest" them. As long as their investments are solvent there is no problem. However, should the investments go "belly up" you are then held accountable for all debts of the company. With the "not for profit" ministries it is a matter of paying for the medical claims and a small amount to cover administration of the account. The amount you will pay will depend upon the number of members versus the amount of the claims. So long as you have a large number of members, in reasonably good health, there should be no problems. On the other hand, if you start getting a number of large claims the amount you will be responsible for will increase. There is no ceiling on the amount that you could potentially be responsible for. They can be a good thing, or a bad thing financially speaking. There are just a lot of variables that you will need to take into consideration before signing up.


TW

[Wes]

Thanks TW. Have you or anyone you know been a member of one? If so was it a good experience when filing a claim, dealing with doctors, etc.

[free]

Wes, I do recall the name of the group my dad was with...As I said, our experience on his behalf was wonderful. Like anything, I'm sure there are stories that would be the opposite of our.

[dolfan]

From my very third-hand knowledge, it is hard to find providers that will accept this form of coverage, at least in Alabama. I've heard talk, but never examined, that they are not permitted in Alabama. That would be chiefly because Blue Cross/Blue Shield of Alabama owns this state lock, stock and barrel, and takes no prisoners.

[jdavis]

Wes,

I was a member of the Christian Brotherhood Newsletter, which at one time was probably the largest of these orginazitions. The Attorney General of the State of Ohio indicted the leader and they tried to reorganize with I think a new name and board of directors. When I was in it from 1994-99 it was very good. I had cancer treatments and they helped me pay about $75,000.00 in medical bills. It all came from individuals who sent their premiums to me. Each month I was sent a name and address of a person with a need and I sent that person a check. It was about $300 per month for family coverage at that time. Some of the problems were:

1. Low lifetime limit ($100,000 at that time). Cancer or heart bypass will quickly exceed that now.

2. You are considered "self-pay" by the health care providers. They get really nervous about that and will turn you over to collections in a heartbeat if the payment gets delayed. There was a 90-180 day turnaround time which required you make minimum monthly payments to each provider until the money comes in.

3. Sometime people are slow in making their premium and it is your responsiblity to do some recorkeeping and reporting to the main office. You are also depositing checks into your account which could raise a flag with the IRS. I eventually opened a separate checking account to run those checks through and pay medical bills.

Eventually my wife went to work and we were able to get into a group plan. The CB News letter had gotten a little shaky so I went with BC/BS. They may have new ways of reimbursement and coverage now since it has been ten years since I was affiliated with them.

Good luck and I hope this helps.

john

[Wes]

Thanks John. It was a big help.