Limitations of Traditional Health Insurance
Beyond cost, limitations within traditional plans can also deter both businesses and employees. Limited network coverage can restrict patient choice, requiring them to utilize specific hospitals or doctors within the plan’s network. Additionally, the potential for coverage denials can create frustration and financial hardship for employees facing medical bills.
These factors, combined with the rising costs, can make it difficult for small businesses to offer an attractive health benefits package without significant financial strain. Without affordable and comprehensive health benefits, potential employees may look elsewhere, leaving small businesses struggling to compete in the job market.
Introducing Health Sharing – A Transparent and Affordable Choice
So how can businesses solve this problem of wanting to provide benefits to their employees, but needing to be able to afford quality options? The solution might lie with health shares. While traditional health insurance can present challenges for small businesses, health sharing organizations offer a viable and increasingly popular alternative. Health sharing is a values-based concept where members directly share in the qualified medical expenses of others within the program.
Health sharing organizations typically operate through a monthly membership structure. Members contribute a set amount each month which is used to pay for qualified medical expenses incurred by other members. Unlike traditional insurance plans with deductibles and copays, health sharing programs have initial unshareable amounts, or the initial amount the member will pay towards their own medical expenses. This structure provides predictable expenses, helping businesses and employees manage their budgets more effectively.
