They Hated Health Insurance. So They Started Paying For Each Other’s Care.

[Northeast Agent]

The People Quitting Health Insurance For An Alternative Idea

Customers sick of dealing with insurance are turning to health sharing as an alternative

time.com

CrowdHealth, which was founded in 2021, offers a new take on an old idea. For decades, religious health-sharing ministries with names like Medi-Share and Samaritan Ministries have asked communities to pitch in for the medical bills of strangers. CrowdHealth has no spiritual affiliation; it's a peer-to-peer financial-technology company that allows its roughly 10,000 paying members to make payments toward fellow members' medical expenses.

To join, members pay an administrative fee of about $55 a month. Each month, they get a message from CrowdHealth informing them that another member needs financial assistance for a specific medical issue. Members can agree to pay their share of the bill, which doesn't exceed $140 per month for a single person under 55, or $420 for a family of four. Or they can decline—at the cost of eroding their rating on CrowdHealth's site, making it less likely that fellow members will contribute to their own needs.

When a member has a health care expense, they're instructed to pay in cash, or tell a hospital that they are a self-pay customer, save the receipts, and submit them to CrowdHealth for compensation. (CrowdHealth sometimes negotiates the price of planned labs or procedures ahead of time.) The company says it covers 99.8% of claims, though it does not specify what exactly is counted in that statistic.

 

[somarco]

The company says it covers 99.8% of claims, though it does not specify what exactly is counted in that statistic.

The challenge with any form of crowd sourcing health care reimbursement program is finding providers willing to accept patients who do not have health insurance.



Consumer protection laws govern many types of health insurance coverage, like plans purchased through an employer or the health insurance marketplace. However, other plans are not insurance and are not required to protect consumers.

Consumers who use health care sharing ministries (HCSMs), discount plans, or risk-sharing plans can best protect themselves by understanding the coverage they participate in.

HCSMs, discount plans, and risk-sharing plans are not insurance products. Before signing, be sure to understand how the plan works and what benefits you or your family can count on.

What You Should Know About Health Care Sharing Ministries, Discount Plans, and Risk-Sharing Plans

content.naic.org

And this . . .

The report from the Colorado Division of Insurance found that more than 1.7 million Americans rely on sharing plans and that many of the plans require members to ask for charity care before submitting their bills.

At least 1.7 million Americans use health care sharing plans, despite lack of protections

Members of health care sharing plans, usually brought together by shared religious beliefs, chip in to help pay one another's medical bills. But there are risks.

www.cbsnews.com

And GoFundMe has a pitiful track record for collections to fund medical expenses.

GoFundMe campaigns for medical expenses have a relatively low success rate, with studies showing that a significant portion don't reach their fundraising goals, and many campaigns receive no donations at all.

Here's a more detailed breakdown:
Low Success Rate:
A study analyzing half a million GoFundMe medical campaigns over five years found that 88% did not meet their fundraising goals, and 16% received no donations.

Concentrated Funds:
While many campaigns fail, the majority of funds raised are concentrated among a small group of successful campaigns.

Factors Affecting Success:
The success of a GoFundMe campaign depends on factors like how widely it's shared, how well it resonates with potential donors, and the transparency of the campaign.

GoFundMe Fees:
GoFundMe charges a transaction fee of 2.9% plus $0.30 per donation, which is deducted automatically from each donation.
Tax Implications:

Money collected through personal fundraisers, such as to pay off health expenses, is generally considered a gift and is not taxable.

Generated by AI


Also, GoodRx has interesting feedback about alternative ways to pay medical bills.

https://www.goodrx.com/healthcare-access/medical-debt/gofundme-for-medical-bills

 

[scagnt83]

The challenge with any form of crowd sourcing health care reimbursement program is finding providers willing to accept patients who do not have health insurance.



Consumer protection laws govern many types of health insurance coverage, like plans purchased through an employer or the health insurance marketplace. However, other plans are not insurance and are not required to protect consumers.

Consumers who use health care sharing ministries (HCSMs), discount plans, or risk-sharing plans can best protect themselves by understanding the coverage they participate in.

HCSMs, discount plans, and risk-sharing plans are not insurance products. Before signing, be sure to understand how the plan works and what benefits you or your family can count on.

What You Should Know About Health Care Sharing Ministries, Discount Plans, and Risk-Sharing Plans

content.naic.org

And this . . .

The report from the Colorado Division of Insurance found that more than 1.7 million Americans rely on sharing plans and that many of the plans require members to ask for charity care before submitting their bills.

At least 1.7 million Americans use health care sharing plans, despite lack of protections

Members of health care sharing plans, usually brought together by shared religious beliefs, chip in to help pay one another's medical bills. But there are risks.

www.cbsnews.com

And GoFundMe has a pitiful track record for collections to fund medical expenses.

GoFundMe campaigns for medical expenses have a relatively low success rate, with studies showing that a significant portion don't reach their fundraising goals, and many campaigns receive no donations at all.

Here's a more detailed breakdown:
Low Success Rate:
A study analyzing half a million GoFundMe medical campaigns over five years found that 88% did not meet their fundraising goals, and 16% received no donations.

Concentrated Funds:
While many campaigns fail, the majority of funds raised are concentrated among a small group of successful campaigns.

Factors Affecting Success:
The success of a GoFundMe campaign depends on factors like how widely it's shared, how well it resonates with potential donors, and the transparency of the campaign.

GoFundMe Fees:
GoFundMe charges a transaction fee of 2.9% plus $0.30 per donation, which is deducted automatically from each donation.
Tax Implications:

Money collected through personal fundraisers, such as to pay off health expenses, is generally considered a gift and is not taxable.

Generated by AI


Also, GoodRx has interesting feedback about alternative ways to pay medical bills.

https://www.goodrx.com/healthcare-access/medical-debt/gofundme-for-medical-bills

The big difference between this and traditional sharing plans, is that this does not promise to cover the claim.

It is up to the other people in the network to contribute or not contribute above and beyond their monthly admin fee. But not contributing, risks a bad rating and people not contributing to you.

Interesting concept. For a family, Id pass. For a single healthy person under 50, I could see the appeal. Especially a solo business owner. $200/m with a $500 deductible. And if the sh*t hits the fan, create a SEP or do group through your biz.

But at least they are being transparent about it not being real insurance and the possibility of your claim not being covered.

 

[Yagents]

My priorty doctors won't let me pay cash nor see me if I'm insured and they are NOT in network.

If I say I'm not insured, they accept cash rate which is lower then network rate.

Same for MRI's. Insured? Yes. We have to wait a week for pre auth at $600 negotiated rate.

Not insured? Oh? We can get u in tomorrow at 8am for $400

Duh with $7500 deductible and need results asap for dr visit 3 days later