What happens when medical expenses skyrocket? You feel traumatised and lost. Since you’re here, we won’t let you focus on problems. We only believe in solutions!
What if you are not prepared for medical expenses such as an expensive test for a lethal disease? What if you are not ready for the consultation fee and the expensive medications? Arranging hard cash can be difficult at those times. Your relatives have also stopped helping you. The only thing they have done all their life is give unsolicited advice.
Well, you should not depend on anyone when medical emergencies arrive. Don’t waste your time asking for monetary help! You can get health insurance. But wait a minute! Isn’t health insurance expensive? You need to think about opting for ILY healthcare plans.
Health insurance is a great solution, but it does not seem practical for everyone. Health premiums are expensive, and not everyone has that money to spend every month. And at such times, you can count on medical cost-sharing plans. What are those, and how are they better or different from traditional health insurance?
As you move forward, we have explained it in detail so you can start planning!
Understanding the Basics of Medical Cost-Sharing Plans.
Get the basics clear first. Medical cost-sharing plans may be called healthcare ministries. These are quite helpful for people who have no other cover.
Traditional health insurance gets expensive, and it may not suit your budget at this point.
So, as the name suggests, medical cost-sharing plans are membership-based. A traditional insurance company does not run them, so you must find a non-profit organisation.
Members of this plan pay a monthly payout towards the group fund each month. When one of the members gets a large medical bill, the fund will pay the amount. It could be some of the amount or the whole.
So, read the guidelines before signing up for this. Expenses will be shareable, but there is no written contract.
You can’t take out money from the fund just like that. You have to pay a specific sum, and then the fund will pay the medical bills. This may not work for you if you have a serious illness. But you may check the terms and conditions before signing up for the plan.
People usually choose this plan because the monthly premiums are lower than conventional health insurance. Some members might even meet a common doctor or clinic who agrees to give discounts. So, covering medical costs without paying a hefty sum every month is beneficial. You may also choose the doctor you want to go to, so there is a bit of flexibility too.
Let’s face it: traditional health insurance will not give you much flexibility. But a medical cost-sharing plan will!
How do I sign up for the medical cost-sharing plan?
Medical cost-sharing plans might be linked to a church, or you may check with people who have formed groups with similar beliefs. There is no legal responsibility or contract here, so you must sign up for it and believe the members.
So, as you can see, the best part about medical cost-sharing is that you are not paying a large sum, and you can still get coverage. You can cover some costs when medical expenses arise, and the fund can do the rest.
Is Medical Cost-Sharing Better than Health Insurance?
That’s a tricky question considering health insurance is a legal contract between the insurance company and the insured. You can get a fairly large sum when needed because you pay high premiums too.
But if we are being practical, not everyone can afford health insurance, so it is discouraging for people who need medical support urgently.
Medical cost-sharing plans have very low monthly premiums.
For example, you might pay something as low as $100 or $200 monthly. That’s affordable for people who may have different goals in mind at this point.
The group members pay the costs directly to the healthcare provider, so there is no insurance agent in between. Many people also enjoy being a part of a community or a like-minded group. Also, people in this group may enjoy good health and motivate each other to be fit and healthy and not indulge in bad habits.
So, medical cost-sharing will work for you if you want coverage without paying a hefty sum. You do not have to worry about the future. Your bills will get paid out when needed, but yes, you must ensure you are leading a healthy lifestyle, and no serious illness enters your body.
