What Are Healthshare Ministries?

Have you ever heard of a Healthshare Ministry? They recently gained popularity in 2010 when the Affordable Care Act (ACA) was passed. Their relatively low monthly payments have been an attractive feature ever since costs on health insurance have increased.

So, what exactly are Healthshare Ministries?

How They Work

First things first, Healthshare Ministries are not health insurance. The government does not require them to pay claims. Rather, they are programs based on faith. Members pay a monthly fee that is pulled together to help pay for each other’s medical bills.

Medi-share’s website gives an easy explanation of their process.

Medical Event
You Select a Network
You Show Your Medi-Share ID Card
Provider Sends Bill to Medi-Share
Medi-share Negotiates/Discounts Bill Amount
Medi-share Finds Members Whose Share Amount Matches Your Bill
Medi-share Publishes Medical Bill For Sharing
Medi-share Transfers Funds From Others For Payment To Providers

Healthshare Membership Requirements

In order to join a Healthshare program, you must agree to their membership requirements. Every ministry has its own beliefs, but most of the core ones are similar.

Here are a few examples:

Do your best to keep up your health
Care for each other
Avoid drug use, alcohol, and abortion

They do not cover any pre-existing conditions. Furthermore, if there was an accident and it was because of something that goes against their standards of belief, the ministry can choose not to cover it.

How Did They Gain Popularity?

As stated before, Healthshares rose in popularity when Obamacare was first enacted. The ACA recognizes these programs as qualified Healthcare. If someone did not want Obamacare they could choose a Healthshare program and avoid paying a penalty. They offer a cheaper alternative for healthy individuals who do not need much coverage.

Why You Should Be Careful

These Healthshare Ministries are not required by law to pay claims. Paying monthly to them does not guarantee that your medical bills will be covered. Moreover, several of them sell their membership through insurance agents and use terms similar to insurance terms. All of these factors can make it difficult to distinguish them from health insurance. Although these ministries do not claim to be health insurance, it is important insurance agents make that clear. If a Healthshare membership is sold claiming to be insurance, the agent could be personally liable to pay the claims. Contact your state insurance licensing department for more information.

I am not saying that it’s wrong to have Healthshare Ministries in the market or that you should avoid them. They might end up being the best option for you. However, we want to make sure that you know the difference between health insurance and a Healthshare ministry. That way, you’ll know what’s available and be able to make an informed decision about your health and finances.

2025 Healthshare Update

Health Care Sharing Ministries (HCSMs) have experienced significant growth since the implementation of the Affordable Care Act (ACA) in 2010. Initially, in 2014, approximately 160,000 individuals participated in these ministries. By recent estimates, membership has surged to about 1.5 million, marking a more than ninefold increase over seven years.

This rise is attributed to several factors. HCSMs often present a more affordable option compared to traditional health insurance, particularly for healthy individuals seeking lower monthly costs. However, it’s crucial to recognize that HCSMs are not insurance providers and are not legally obligated to cover medical expenses. They operate on a faith-based model where members contribute funds to assist with each other’s medical bills.

The regulatory landscape for HCSMs varies across the United States. Approximately 30 states have enacted safe-harbor laws that exempt these ministries from state insurance regulations, provided they meet specific criteria. This exemption means that HCSMs are not subject to the same oversight as traditional insurers, leading to concerns about consumer protection and financial accountability.

Many members report positive experiences. However, in some instances, individuals faced substantial medical bills that were not covered by their HCSM. Critics argue that the lack of regulation and guaranteed coverage can leave members vulnerable, especially when unexpected medical issues arise. It’s essential for potential members to thoroughly understand the terms, limitations, and obligations associated with HCSMs before enrolling.

In conclusion, Health Care Sharing Ministries offer an alternative to traditional health insurance, appealing to many due to their community-based approach and lower costs. However, the absence of regulatory oversight and guaranteed coverage necessitates careful consideration and due diligence to ensure this option aligns with one’s healthcare needs and financial situation.

Agents

We hope that this information on healthshare programs is useful to you.

Empower Brokerage is dedicated to helping you make informed decisions about your health and finances. Whether it’s through webinar training, one-on-one calls, seminars, or marketing plans, we want you to be successful!

Give us a call at 888-539-1633 or leave a comment below if you have any questions.

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This article was updated on 4/1/2025.