Switching to a HealthShare involves learning terms and processes, and understanding out-of-pocket costs can be challenging. Regardless of the chosen HealthShare, a monthly payment is required to maintain membership, similar to how a monthly insurance premium is required to continue coverage. However, several differences distinguish a HealthShare contribution from an insurance premium.
The unique nature of HealthShare contributions
HealthShare membership is voluntary, with no contracts or commitments to specific timeframes. Monthly payments, often referred to as “monthly contributions,” emphasize the elective nature of the commitment. While voluntary, these monthly payments must be submitted to maintain membership.
Different HealthShares may use various terms for this financial obligation, such as “monthly share,” “membership contribution,” “monthly share deposit,” and “monthly financial gift.” Regardless of the terminology, these phrases refer to a member’s monthly payment.
When selecting a HealthShare organization and membership level, consider that overall monthly healthcare expenses may involve more than just the monthly HealthShare membership dues. Additional costs may include meeting a personal responsibility amount, paying for unshareable expenses, and budgeting for Direct Primary Care (DPC) membership or insurance coverage. Taking all these factors into account helps ensure the chosen HealthShare best suits individual needs and financial circumstances.
Pay more now or later
Monthly HealthShare expenses influence out-of-pocket costs when members visit a provider. A lower monthly cost typically results in higher out-of-pocket expenses, while a higher monthly cost generally leads to smaller out-of-pocket costs and more shared expenses—that may be shared more quickly.
A lower monthly contribution corresponds to a higher member responsibility, the amount a member is responsible for before the community shares expenses. Conversely, a higher monthly contribution results in lower member responsibility. Paying more up front leads to paying less later.
Deciding between HealthShare memberships
It is tempting to focus on monthly expenses as a main priority, but a low monthly payment could mean higher costs during a medical event. For example, a membership program costing $100 per month might require a $5,000 responsibility before anything becomes shareable. Therefore, when a potential member is considering their HealthShare membership level, they should look at the monthly contribution in connection with the member responsibility.
Although HealthShares aim to address major and unexpected medical expenses, a low-cost monthly membership may not be as effective as a membership with a higher monthly contribution and lower personal responsibility amount. The right choice depends on how a HealthShare membership will be utilized as a healthcare tool. Prospective members should examine their healthcare priorities and lifestyle carefully before deciding which monthly cost approach is right for them.
