ou’re starting a small business and want to provide health insurance to your employees, but typical health insurance is prohibitively expensive? Medical cost-sharing can be a simple, new approach to giving health benefits while keeping expenses under control for small organizations with only a few employees.
Medical cost-sharing, or health care plans, are a legal and legitimate alternative to traditional insurance. These programs have been around for decades, but their popularity has exploded in recent years as national health insurance prices have risen dramatically.
Over 2 million people are currently enrolled in medical cost-sharing plans.
What is a Medical Cost-Sharing Program?
Healthcare ministries are a term used to describe medical cost-sharing plans. They’re not run by insurance corporations; instead, they’re run by non-profits. Every month, members contribute a certain amount to a group fund. When a member receives a large medical bill, the fund pays a portion or all of it. The plan’s criteria specify which expenses can be shared.
However, before the plan pays out, the member must first fund a portion of the cost. This amount, known as the member’s “personal responsibility” or “annual household portion,” functions similarly to a health insurance deductible.
Many small businesses prefer these plans to health insurance since the monthly fees are typically less. Some plans encourage members to see healthcare providers who have previously agreed to discounted rates in order to keep expenses down. Other plans allow members to see any doctor they like but limit the payout to a “fair and reasonable” amount less than the doctor’s typical fee.
Things You Should Know Before Choosing the Plan For Your Employees
Health sharing plans are less expensive than traditional insurance.
Small businesses can save between 20% and 50% on group health sharing programs compared to traditional insurance coverage and that is why it is the best health insurance alternatives for small business.
- Contributions to the health savings account are not tax-deductible.
- Health sharing contributions, unlike HRA money and group insurance contributions, are not tax-deductible.
Benefits of Medical Cost-Sharing Plans
Although health-sharing plans have existed since the early 1980s, they are now more popular than ever. Health sharing offers a number of substantial advantages over traditional insurance for businesses with 50 or fewer employees:
- The cost of group health sharing is less than the cost of group insurance.
- There’s no denying that the fundamental benefit of healthcare plans is the cheap monthly cost.
- There is no minimum contribution in a healthcare plan.
- Employers can determine exactly how much to contribute to an employee plan with health sharing.
- The employee pays the rest of the monthly share cost through a paycheck.
- There are no network restrictions in some medical cost-sharing communities.
- No matter which doctor or hospital was used, as long as the expense is allowed under the plan guidelines, it is eligible for cost-sharing.
So, what are you waiting for? Find the best medical cost-sharing company today and book your appointment to know more about the coverage.