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Reader’s question:
What is a Group Health Expenses Sharing Plan? Is it different from my employer health insurance plan?
-A. Allardyce
Good question!
Actually, a group health expense sharing plan isn’t an insurance plan at all, but it works in a similar way. A group of individuals pool their money together in order to help pay for each other’s health expenses. In a way, they become their own insurance company. These sharing plans can vary in sophistication—some individuals may put all their money in a shoebox, and some choose to invest it and use the dividends to help pay expenses.
Obviously, the benefits and problems of a sharing plan are obvious right away. Not everyone has the same idea of what is a medical necessity. Some members of a group may want to go to the hospital everytime they get the flu; other members of the group will want to use their money for prescriptions, and yet another member will only go to the hospital if he or she need surgery. This could lead to anger that the fund is being “frittered away” or lead to personal infighting. The best way to avoid this is to get as many people as possible in your cheap health “insurance” plan.
One group—Medi-Share—has several thousand members, and has a good track record. It’s worth looking into if you haven’t found a family health insurance plan that works for your budget.
Nicholas
