Looking for a budget-friendly alternative to traditional health insurance? A possible solution could be medical sharing ministries.
Let me share a financial blunder I made. I went without health insurance for nearly ten months. I mistakenly assumed I had three months to get insurance via the Obamacare Exchange after quitting my job. I thought I wouldn’t be penalized for a 3-month insurance gap while switching jobs, but I was wrong. The actual window is 60 days, not 90.
Regretfully, I didn’t realize this until it was too late. So, I was left with two options: pay the Obamacare tax penalty or find a workaround. I found the idea of mandatory insurance quite irksome, but that’s another topic.
I checked the cost of insurance, and it was almost $350 a month for a plan with a $10,000 deductible, which felt steep since my annual income was only about $20,000 that year.
Like it or not, having no insurance is risky; it’s like playing a dangerous game of chance. But during that last year, it somewhat worked out for me, except for that one costly physical exam for a job I didn’t eventually get.
This previous summer, however, I started researching approved alternatives to mandatory health insurance to bypass the tax penalty. That’s when I came across medical sharing ministries.
Basically, a medical sharing ministry is a Christian group where members adhere to Christian principles. They contribute money every month into the ministry, which then covers all members’ eligible medical bills. I understand that the religious angle might not suit everyone, but it sounded interesting to me so I decided to investigate further.
One critical note: different medical sharing ministries work in diverse ways. Some ask you to send your payment directly to another member for their medical expenses. I wasn’t comfortable with this and decided to go with a ministry that ran more like a standard insurance company – each member pays a monthly premium, and the company handles the dispersion and payment of medical bills.
Two of the largest health care sharing ministries out there are Samaritan Ministries and Medi-Share.
There are a few essential things to know:
1. Participants must live according to Christian values. If your medical ailments are due to activities like drug usage, sex outside of marriage, smoking or alcohol abuse, these conditions will not be covered.
2. Your money isn’t insured or guaranteed. The ministry does its best to cover all medical bills, but there is no assured protection.
3. There are still monthly payments and a deductible to meet.
4. You need to sign a limited Power of Attorney for them to access your medical records.
5. You need to open an account at a Christian credit union to process payments.
6. References from your church or a written testimony of your Christian journey may be required.
Despite these requirements, I’m satisfied so far. My payments are $185/month with a $2,500 deductible. Health care sharing ministries also satisfy the insurance coverage requirement of the Affordable Care Act.
So if traditional insurance isn’t possible for you, or simply doesn’t sit well with you, a medical sharing ministry could be worth looking into. However, it’s important to fully understand what you’re signing up for. Call it a ‘loophole’ or just another avenue, such options can assist in managing your healthcare costs without breaking the bank.
Please note, this is my personal health care choice. I don’t get any financial benefit from sharing this. The link I provided to Medi-Share is a referral link, so if you decide to join, I would receive a small fee deducted from my monthly contribution.
Ever discovered any clever ways to reduce your health care costs? Feel free to share.