Chances are good if you are reading this you likely get your health insurance benefits from your employer. In fact, 49% of all Americans get their health insurance from their employer.
Here is the breakdown in the U.S.
Most people in America get their benefits from their employer. Since the cost is so high most employers pay for the employee’s cost and the cost for the dependents are deducted from the employee’s paycheck. The average employee has no idea what they might be paying for those benefits because it is deducted from their paycheck and they just spend the leftover. In addition, these employees are not aware that they have alternative affordable options.
The bottom line is that the average employee with a family is spending $1,000 per month deducted from their paycheck and they could be overpaying by 50%.
Healthcare Sharing Plans have been around since 1981. Many of them are quite large and have over 300,000 members. A few also have large national PPO networks with expansive doctor & hospital networks. Most Healthcare Sharing Plans have a 3-year waiting period on pre-existing conditions. These plans tend to be an excellent value for individuals & families who are generally healthy and open minded to a faith-based alternative to traditional insurance. They are generally not a good fit for people who have substantial pre-existing conditions.
So, let’s take another look at this family from the previous scenario. 40-year-old husband & wife with 2 kids. If they opted out of their employer-sponsored health insurance plan and decided to choose a Healthcare Sharing Plan with a $5,000 / 100% plan their total monthly cost will drop to $350.
It is important to note that the employer group health plan can be paid with pre-tax dollars. The Healthcare Sharing Plan is required to be paid with after-tax dollars. Depending on their tax bracket this will decrease the savings.
You can opt out of your employer-sponsored group plan with a 30-day notice. You can also sign up for a Healthcare Sharing Plan at any time of the year. However, if you have significant pre-existing conditions you should carefully weigh the pros & cons before switching. Most Healthcare Sharing Plans have a 3-year waiting period before pre-existing conditions are eligible for sharing.
Some of the Healthcare Sharing Plans only charge for the first 3 members in a family. Therefore, a family with 10 children will pay the same as a family with 1 child. So, if you have 2 or more children in your family this deal could be extremely sweet for you.
Many innovative employers are beginning to offer these plans as an affordable alternative to their group health insurance plans. Share this with your employer and ask them to explore offering these types of programs for your next open enrollment.
current employer-sponsored health plan.