Catastrophic Health Insurance vs Health Share Plans

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What is Catastrophic Health Insurance?

Catastrophic Health Insurance are Health Insurance plans that have low monthly premiums and very high deductibles.

This means that in case of a large medical expense, you would need to pay your deductible amount before the Health Insurance would pay for your medical expenses.

What is a Health Share Plan?

A Health Share is a non-profit organization where health care costs are shared among members. Health Share members have a common goal of sharing in one another’s medical expenses. A Health Share provides an organized way of making this happen.

While most Health Shares today have a religious component (also known as a Health Share Ministry), there are also Non-Religious Health Share plans that do not require a religious affiliation to join them.  

Health Share Plans are not Insurance, but they can certainly be an affordable alternative, especially for those who do not qualify for Catastrophic Health Insurance.

How Much for Catastrophic Health Insurance?

The average monthly premium for Catastrophic Health Insurance is $173 a month with a deductible. For Individuals, the deductible amount is $8,550. For families, the deductible amount is $17,100.

How Much for a Health Share Plan?

Health Share Plans can cost anywhere between $78 to $199 a month for an individual in their twenties and over $500 a month for a family with the adults being in their fifties or sixties.

Health Share Plans have a member responsibility amount that needs to be paid before the community shares in any medical bills. The average amount for this is $1,000 or $2,500.

Catastrophic Health Insurance vs Health Share Plans

Similarities

Both Catastrophic Health Insurance and Health Share plans are designed to help with large and unexpected medical events. Smaller medical bills are typically the responsibility of the insured or Health Share member.

Differences

AGE: Catastrophic Health Insurance is typically for people under the age of 30, or those who meet certain requirements.

Health Share plans are for anyone under the age of 65 years old.

COST: Catastrophic Health Insurance is comparable to the monthly cost of a Health Share plan (for those under 30 years old), but the Catastrophic Health Insurance has a much higher out-of-pocket amount.

Health Share plans do not have a deductible, but a member responsibility amount (it’s called different things at different Health Shares, but it’s basically the amount the member needs to pay first, before any medical bills are shared with the community).

QUALIFICATIONS: With Catastrophic Health Insurance, you must be under the age of 30, or someone of any age that qualifies for a hardship exemption (like experiencing a natural disaster, homelessness, domestic violence, or financial hardships).

Most Health Share organizations are faith-based and require members to live according to certain religious or biblical beliefs. Not living by those standards set by the Health Share will determine whether a medical need is eligible for “sharing” with the community. For example, if you are not married but you or your partner become pregnant, a faith-based Health Share will not “share” in any maternity bills since it’s not eligible for “sharing” with unwed parents (It is something members agree to before they join). For some, this is a selling point to join that particular Health Share, for others, there are secular Health Share plans that do not have faith-based requirements.

WAITING PERIOD: Catastrophic Health Insurance may have up to a 45 day waiting period before someone can be insured.

Health Share plans are active upon enrollment with no waiting period.

Which One Should You Choose?

If you qualify and you have the money available for your deductible, then Catastrophic Health Insurance may be right for you.

If you do not qualify for Catastrophic Health Insurance or do not want a high deductible plan, a Health Share Plan can certainly be an affordable alternative.

In just a few minutes, you can learn more about Health Share Plans and find out which ones are rated as the Best Health Share Plans.