According to the latest data, people spend almost $5,000 per year on healthcare. For reference, that’s more than double what people paid just a few decades ago!
But don’t worry, there is some good news. If you’re tired of spending a small fortune on your insurance premium, you can save by switching to a healthshare program.
However, before you sign up, you’ll want to make sure you have all the details. Keep reading to find out whether this new form of “insurance” is a viable option for yourself and your family.
What Is a Healthshare Program?
Healthshare programs are community-based programs in which each participant agrees to chip in money to cover the medical costs of other members. It’s worth noting that these costs are out-of-pocket expenses.
Communities are often small, and sometimes faith-based. Whereas an insurance company can easily cover costs due to their size, healthshare programs rely on individuals.
When a participant needs to visit a doctor or pay for medication, they’ll receive money from the community pot to help cover the costs.
Therefore, by definition, it’s important to understand that healthshare insurance isn’t insurance at all. Instead, it’s more of a financial account shared amongst a group.
Who Are These Programs For?
There are several cases in which a person could benefit from leaving their healthcare provider in favor of a community plan.
If you’re self-employed or don’t receive healthcare through your employer, it may be a more affordable option than paying into a monthly premium. The same can be said of individuals who rarely have medical costs to begin with.
It is worth noting that payments aren’t tax-deductible, unlike standard insurance payments.
Is It a Better Option Than Insurance?
That’s a tough question to answer, as it’s going to vary from case to case.
If you’re someone who spends a ton of money on your health insurance, but you don’t require regular medical attention, healthshare insurance might be good for you. This is especially true when you consider that you can buy cheap prescriptions online as long as your doctor provides a prescription in the first place.
If you or your household require multiple medications and semi-regular doctor’s visits…well, you might not save that much money in the long run. It may be better to stick with a normal health insurance plan.
The same can be said if you’re in a program with someone who has serious healthcare requirements. Since you’re agreeing to help cover their costs, you could find yourself on the receiving end of some expensive fees.
Should You Get Healthshare Insurance?
The bottom line is that healthshare programs are a bit of a mixed bag. While you could end up paying far less than you would through an insurance plan, you actually run the risk of paying more if you’re grouped with someone who requires medical attention often.
However, if you’re self-employed and don’t qualify for government help, healthshare might not be the worst idea.
Before you go, don’t forget to visit the other sections on our blog for more helpful content.