Health share ministries (HSMs) are like a hybrid between an insurance plan and a faith-based financial aid organization. An HSM is an organization that reimburses its members for medical expenses that they incur due to a medical issue, such as a serious illness or accident, or specific procedures like bariatric surgery. Members pay an annual membership fee that covers their premium costs for availing services covered by their health plan and any other eligible expenses not covered by their primary insurance. For example, If you’re obese and your primary coverage does not adequately cover weight-loss surgery, you can join an HSM to supplement your primary plan’s benefits. There are wide varieties of HSMs, but they all essentially serve the same purpose: to supplement healthcare plans that don’t meet their members’ needs. Here are six tips to help you choose the right one for your circumstances.
Research your options.
There are more than 50 companies that offer health share plans, and some of them operate in more than one state. Your best bet is to start your research with a free and comprehensive directory of providers. The first thing to do is figure out if an HSM is a right solution for you. For example, HSMs are not designed for those who are young, healthy, employed, and have access to employer-sponsored health insurance. If you suffer from one or more chronic illnesses and your current coverage does not adequately meet your needs, an HSM should be seriously considered. Chronic illnesses, such as diabetes, heart disease, obesity, and mental health disorders, can be very expensive to treat. An HSM may be the best alternative if your current coverage is through an HMO or PPO. If your employer provides a health plan that meets your needs, it would be a mistake to switch to an HS plan.
Determine if an HSM is right for you.
Essentially, joining an HSM is a contract between you and the organization that promises to share the cost of your medical expenses. As noted above, when you join, you pay a one-time premium up front and agree to pay a small monthly maintenance fee. In return, the organization promises to reimburse you for your medical expenses once they exceed a certain amount. If your annual medical expenses are less than the predetermined amount, you will not have to pay for anything. However, if your expenses exceed that amount, you will have to cover the difference out of your own pocket. If you join an HSM, you must agree to one or more contracts for a specified period, such as one year or five years. You must sign the contract and agree to its terms when signing an insurance policy. However, you can easily get affordable health care plans.
Decide how much coverage you want.
As noted above, you can choose the amount of coverage you desire. Be sure to keep in mind, however, that the higher the level of coverage you select, the larger the monthly fee will be. You can also choose the length of the coverage you desire. Some HSMs offer short-term plans for as little as three or six months and renewable or long-term plans. If you are dealing with a chronic condition, such as diabetes or heart disease, you probably will want to choose a longer period of coverage, such as five years. If you are dealing with an acute condition, such as a broken leg or an appendicitis attack, you can select a shorter period of coverage. Keep in mind that an HSM may reject your application if you select too high a level of coverage. If you select too low a level of coverage, there’s a good chance that you will incur significant medical expenses and end up paying a lot more than you expected.
Choose the amount of coverage you desire.
As noted above, you can choose the amount of coverage you desire. You can select the level that best meets your needs and your budget. The amount you select will depend mostly on your current level of coverage and the amount of your anticipated annual medical expenses. You may also want to consider the amount of time you expect to need to remain a member of the HSM. If you are dealing with a chronic condition, such as obesity, some HSMs may approve you for a long-term membership. In other cases, the coverage period will be limited to one year. If you are dealing with a short-term condition, such as a broken leg or an appendicitis attack, you may want to select a shorter period of coverage, such as three or six months. In any case, you should select a level of coverage that you feel comfortable with, is affordable, and meets your needs.
Conclusion
Health share ministries offer a wide range of coverage and a very affordable monthly premium. However, before you rush out and sign up with the first HSM you find, you should know that the requirements for joining an HSM vary from one company to another. In general, however, you must be a U.S. citizen or a permanent resident, be between the ages of 18 and 65 years, be a person of good health, agree to be counseled by a medical provider who is associated with the HSM you select, and select the amount of coverage you desire. Most importantly, you must research your options, select the HSM that best meets your needs, and understand any limitations that apply to the coverage they offer.
