What exactly is health cost sharing?

Picture this: You have an unexpected, significant medical expense and you’re now faced with the unforeseen burden of medical debt.

Even with health insurance, there are still often out-of-pocket costs for families and individuals. U.S. healthcare costs are on the rise. According to the Kaiser Family Foundation, the 2023 average insurance premium for an individual was $703 a month, causing people to wonder “Why is health insurance so expensive?” and “Is there a better way?”

We think so.

Health cost sharing is an alternative to health insurance. It’s an out-of-the-box solution for paying medical costs and is often more affordable.

Members of health cost sharing ministries (HCSMs) pay monthly amounts that are then used to “share” or pay other members’ eligible medical bills.

HCSMs are often non-profit organizations and consist of members from a similar faith background. Since they’re non-profit, nearly all monthly membership amounts can go toward paying other members’ medical bills.

Health insurance alternatives

Health cost sharing has become a popular alternative to health insurance in the last decades, particularly after the Affordable Care Act was put into place. When looking into a health cost sharing ministry for your healthcare, here are some things to consider:

• As noted, health cost sharing programs often cost less than the insurance counterpart, making it easier on the budget and more achievable for families and individuals.
• HCSMs have flexible enrollment dates—you can join anytime throughout the year.
• Because of their unique model, most often there’s no provider network—you choose your provider.
• They’re often faith-based and align with Christian faith and values.
• There is a community aspect—you know your monthly contributions are going to help others with their medical bills, and you can pray for one another.
• Although they are ministries, there are guidelines that are followed for what types of medical bills are shared. These guidelines enable you to know what you’re paying towards and what to expect if you need to utilize it.

Define sharing

The concept of health cost sharing is based on Acts 2 and 4 with the believers of the early church who “held all things in common” and pooled their resources to help one another. It is also based on Galatians 6:2 [ESV], “Bear one another’s burdens and so fulfill the law of Christ.”

Health cost sharing is modeled after these biblical passages. When coming together collectively to help and support one another, what seems like a huge burden to be lifted on one’s own becomes lighter. Sharing medical bills amongst a group of people can make health care affordability a reality.

What is Christian Healthcare Ministries?

Christian Healthcare Ministries (CHM) is the first and original health cost sharing ministry, established in 1981. CHM began after a pastor and his family were in a tragic car accident. Their newsletter subscribers (upon hearing about the medical expenses) voluntarily sent in donations which paid for the costs of their medical bills. From there, health cost sharing was born. Over 40 years later, CHM has paid 100% of eligible medical bills to their members. Recently, CHM achieved independent accreditation through Demotech, a financial stability firm, and has been a Better Business Accredited Charity since 2013.

How does Christian Healthcare Ministries work?

Once you’ve signed up, you’ll make monthly payments based on the program you select.

If you have medical bills that need reimbursed, you submit itemized bills along with the required forms.

Medical bills are processed and reviewed for eligibility. Eligible bills are then approved for sharing and they’re reimbursed directly to you so you can pay your provider.

Insurance companies regularly negotiate medical bills. Because members of health cost sharing ministries are considered self-pay patients, they’re often extended self-pay discounts on their medical bills. Medical bill discounts are a significant source of cost savings and contribute to the ability to keep health cost sharing programs affordable.

It’s that simple.

As you’re considering your healthcare options, evaluate if a health cost sharing ministry is the right option for you. It may give you the freedom, flexibility, and cost savings you’ve been looking for.