Skyrocketing Premiums Drive Americans to Healthcare Sharing

As health insurance premiums soar—ACA marketplace enrollees who kept the same plan are paying an estimated 114% more on average after enhanced federal tax credits expired, according to KFF—millions of Americans are seeking alternatives. A growing number are turning to healthcare sharing, a nonprofit model where members pay a monthly contribution instead of a premium, and those funds cover each other’s eligible medical expenses. The concept has existed for over 40 years and has grown from 160,000 participants in 2014 to an estimated 1.7 million today.

In practice, members present a membership card at the doctor’s office and pay a set fee at the time of visit, similar to a copay. The healthcare sharing organization then reviews the bill and sends payment directly to the provider once the household has met a set threshold, similar to a deductible. What sets healthcare sharing apart is where the money goes: into an account used to pay other members’ medical needs, rather than into an insurance company contract. According to WeShare Health, a nonprofit healthcare sharing organization that has served more than 100,000 members nationwide, contributions typically run 30 to 60 percent below comparable traditional coverage.

“People assume affordable means settling for less,” said Christopher Jin, founder and CEO of WeShare Health, who spent over two decades in the insurance industry before starting the organization. “It doesn’t have to be that way. Lower cost and real access to quality care aren’t mutually exclusive.” Healthcare sharing isn’t insurance and doesn’t guarantee payment of medical bills, so people should do their homework: confirm an organization’s nonprofit status, request its guidelines in writing before enrolling, and read independent reviews. For individuals and households priced out of traditional coverage, it’s a reminder that the sticker price on a monthly bill isn’t the only option on the table. Learn more at wesharehealth.org.