Lost Faith In Obamacare? Discover Whether a Health Care Sharing Ministry Could Work For You

There has been no shortage of controversy surrounding the passage and implementation of the Patient Protection and Affordable Care Act (“ACA”), also known as Obamacare.

Opponents of the law have loudly objected to many of its provisions from the beginning and no aspect of the law’s implementation have not undergone extensive scrutiny and criticism.

One aspect of the ACA that has not garnered much media attention – but has been growing in popularity – is health care sharing ministries. A provision of the ACA, it actually enables individuals to sidestep it altogether.

What is a Health Care Sharing Ministry?

According to HealthCareSharing.org, a health care sharing ministry is “a health care cost sharing arrangement among persons of similar and sincerely held beliefs.”

Similar to traditional health insurance, members of health care sharing ministries send in a monthly “share” or “pledge” that is then pooled to pay the outstanding medical bills of the group. Monthly “share” amounts vary by ministry and are based on factors such as age and family size. However, unlike those with traditional health insurance, members of health care sharing ministries are typically required to pay out-of-pocket for preventative care such as well visits, colonoscopies, and mammograms.

Here are some other notable ways health care sharing ministries differ from traditional health insurance:

1.      Health care sharing ministries are not required to accept customers with pre-existing health conditions.

2.      They can include lifetime caps on coverage.

3.      They are not required to cover services or products they find objectionable. Services not covered by health care sharing plans can include things like birth control, smoking cessation, and drug rehab.

4.      Perhaps most importantly, health care sharing ministries strictly seek member who maintain active Christian lifestyles.

Are Health Care Sharing Ministries Cheaper?

According to government number-crunchers,healthcare costs in the U.S. per capita is higher than any other industrialized country -- currently around 17% of GDP. With that in mind, it’s no wonder that so many families have put serious thought into switching from traditional health insurance to a health care sharing ministry.

But, how much would they save? Let’s start with a family of four, aged 34, 35, 5 and 3 and living in a suburb just north of Indianapolis, Indiana. With an annual income of $94,000 per year – not millionaires but still over 400% of the Federal Poverty Limit– they do not qualify for subsidies that would lower the cost of traditional health insurance and must absorb the full premium cost of any plan purchased.

This below chart compares how much this family would pay if they chose the cheapest traditional health insurance plan available in their county and state in 2014 and what they would pay if they chose the best coverage offered by each of the main health care sharing ministries:

None of the add-ons offered by the ministry plans, such as extensions on lifetime caps, were included.

When you compare these plans with the cheapest traditional health insurance plan with a $12,000 deductible, the cost savings are evident. With potential savings of more than 50 percent, it becomes easy to see how a family with few health problems would throw caution to the wind and take their chances, right?

Health Care Sharing Ministries: An Alternative to Obamacare

With tax mandates expected to climb to $695 per adult for those failing to purchase qualified ACA coverage by 2016, health sharing ministries could provide a cheaper alternative. Sure, they may require a bit of faith but, for some, the savings could be well worth it. It is safe to say that health care sharing ministries are here to stay.