ACA-Exempt Healthshare Plans
A Low-Cost and Legal Way to Opt Out of Obamacare
As health insurance rates have continued to explode, millions of people have been switching to a lower-cost alternative to expensive Obamacare plans. Called “Healthshare Plans” these are membership organizations that share medical costs among their members.
This Not a Health Insurance Policy
Healthshare plans are not offered by insurance companies, but rather by recognized Health Care Sharing Ministries (HCSMs). To qualify, these organizations have been in existence and sharing medical expenses continuously and without interruption since December 31, 1999. They must be set up as a non-profit 501(c) organization.
Because these plans are not insurance, they do not fall under state and federal regulations governing health insurance.
Members of HCSMs pay a monthly contribution which goes into an escrow account, and it is that money that is used to pay qualified medical needs.
Exemption from Obamacare Requirements and Penalties
Under the Affordable Care Act, virtually all Americans are required by law to purchase health insurance. Those who don’t will face a tax penalty of up to 2.5% of their family’s annual income.
But members of recognized HCSM’s are exempt from this requirement. When filling out their tax return, they simply use IRS Form 8965 to indicate their exemption.
Considerably More Affordable
Healthshare plans to not have “premiums”, but rather “contribution amounts”. Typically, these amounts are half or less the cost of an unsubsidized health insurance policy.
There are several reasons for this. The first is that because healthshare plans will not cover pre-existing conditions for at least two years, the people joining healthshare plans are, on average, much healthier than those buying health insurance.
Healthshare plans are also not required to cover birth control, preventive care, and many of the other essential benefits required under the Affordable Care Act.
Special Requirements and Conditions
Unlike health insurance plans, healthshare plans are not required to cover pre-existing conditions. In most cases, there will be at least a two year period before pre-existing conditions are covered.
They also generally do not cover cancer for the first 12 months of the policy, and most have a lifetime limit of $1,000,000 in cost sharing.
Because healthshare plans are offered by faith-based groups, they also often have additional rules and restrictions. Some do not accept smokers, most do not cover for drug rehabilitation, and some require that you attend church regularly.
They also all have a statement of faith that you must sign. Some are Christian-based, and others are non-denominational.
Please read the details thoroughly, so you understand any restrictions on the plan you choose.
Available Healthshare Plans
For AlieraCare plans you must submit your application no later than the 15th of the month, for an effective date on the 1st of the month. For Altrua plans, you must submit your application no later than the 20th of the month, for an effective date on the 1st of the month.