Healthcare Sharing Ministries

[pcbinsurance]

This concept will undoubtedly gain traction in the coming months/years I would think. I never even really heard of this until lately.

Any comments on this? How widespread is this? Are people who opt to do this truly exempt from the regulations, penalties, etc. under the new health bill?

https://medi-share.org/ms/lp/pi_12-...=11887918586&gclid=CK3Dip21jLYCFQ6EnQodrTAAnQ

 

[Ann H]

This goes back 20 years or more. Some organizations that have done this found themselves in court for fraud and selling insurance without a license. Others faced the IRS that said all those "gifts" were taxable. It's basically an idea where you pay a low membership fee, then members submit their medical bills, and all the other members give them gifts (of money) to pay the bills.

 

[pcbinsurance]

Sounds cult-like almost! My wife's boss, who is an attorney, does this for his family of 4 and pays $300 a month. Depends on health as well and you have to be non smoking.

 

[taterpeeler]

this works great up until the time one of the members has cancer or a stroke and has about 500 K in medical expenses

 

[somarco]

Other than the fact several of these arrangements have run afoul of the DOI and others have gone poof after they ran out of money, the biggest challenge is when you want to schedule non-emergency care that costs an arm and a leg.

There is no insurance. No guarantee of payment. Getting a hospital or doc to sign off on $100k+ in treatment betting on the come is going to be a real challenge.

 

[Yagents]

If they share, I BELIEVE it's only at Usual and Customary rates, the provider can and will seek the difference in billed charges. Smokers are not allowed on the plan. And, it looks like the law states they may have to stay on the plan if they become sick.(or, may be reading it wrong)

Here is the text from the law:

''(2) RELIGIOUS EXEMPTIONS.—
''(A) RELIGIOUS CONSCIENCE EXEMPTION.—Such term
shall not include any individual for any month if such
individual has in effect an exemption under section
1311(d)(4)(H) of the Patient Protection and Affordable Care
Act which certifies that such individual is a member of
a recognized religious sect or division thereof described
in section 1402(g)(1) and an adherent of established tenets
or teachings of such sect or division as described in such
section.
''(B) HEALTH CARE SHARING MINISTRY.—
''(i) IN GENERAL.—Such term shall not include any
individual for any month if such individual is a member
of a health care sharing ministry for the month.
''(ii) HEALTH CARE SHARING MINISTRY.—The term
'health care sharing ministry' means an organization—
''(I) which is described in section 501(c)(3) and
is exempt from taxation under section 501(a),
''(II) members of which share a common set
of ethical or religious beliefs and share medical
expenses among members in accordance with those
beliefs and without regard to the State in which
a member resides or is employed,
''(III) members of which retain membership
even after they develop a medical condition,
''(IV) which (or a predecessor of which) has
been in existence at all times since December 31,
1999, and medical expenses of its members have
been shared continuously and without interruption
since at least December 31, 1999, and
''(V) which conducts an annual audit which
is performed by an independent certified public
accounting firm in accordance with generally
accepted accounting principles and which is made
available to the public upon request.

 

[pcbinsurance]

I realize this isn't really insurance (doesn't even cover doctor visits?) but my main question was whether people who do this are exempt from the regulations, penalties, etc. under the new health bill?
EDIT: Bill is always right on time! Thanks!

 

[Yagents]

I may have to put down the beer, and cut out the cussing.....

 

[pcbinsurance]

....And I have to quit my awful one cigar a week habit.

 

[HealthGuy]

PCB has a great question. Is Queen Sebellius and King Obama going to declare by edict this type of arrangement is outlawed per Obamacare? Great question.