Finances and Your Healthcare Options; What to Consider

If you feel like you’re spending more and more on traditional healthcare, you’re not wrong. Statistics from the National Health Expenditure Accounts (NHEA) show that healthcare spending has hit an average of $13, 493 per person per year in the United States.¹ Play that math out and you’ll find that means that Americans are spending $4.5 trillion dollars on health care and insurance. Many families are spending up to 20% of their household income on medical expenses, far above the 5% or lower recommended by financial planning specialists.

There is deep controversy surrounding this explosion of medical costs. Most traditional insurance is a massive profit center. For example, United Health Care group posted $22 billion in profits at the beginning of 2024, according to Forbes magazine.² While a portion of profits are used for paying medical bills, there is growing concern that consumers are often getting stuck with underpaid bills while shareholders reap financial rewards. According to a revealing article in the Pennsylvania Capital-Star by journalist Will Humble, “Anthem Blue Cross Blue Shield has been consistently underpaying reimbursements and inappropriately denying coverages. In 2021, 53% of Anthem’s medical bills for the second quarter were unpaid, amounting to $2.5 billion.”³ From requiring pre-authorization that causes delays in access to healthcare to other system complexities, many lawmakers and patient advocates are calling for change in the way big insurance operates.

These are just a few examples of why you might want to consider a health share this open enrollment season. Health shares are nonprofit organizations, made up of members who share in medical costs. For example, at Altrua HealthShare, Member monthly contributions are held in a Membership escrow. Eligible medical needs are paid out of that escrow and any funds not used are held for further medical expenses. This distinction is possible because Altrua HealthShare is a non-profit 501(c)3 ministry.

This also means that the monthly cost of membership to Altrua HealthShare remains below the average cost of traditional insurance, an important consideration as traditional insurance premiums continue to skyrocket. Michael Montes, health share expert, writes, “Health sharing typically saves 40 to 50 percent per month vs the unsubsidized cost of a traditional health insurance policy.”⁴

Monthly health share contributions range on average from $150 to $500 for an individual, with family plans costing more. Traditional insurance premiums come in at an average of $560 per month for an individual, with family plans usually costing over $1500 per month. While health shares may not share in all services, the savings can be significant.

What are some important things for you to consider when it comes to deciding if a health share is right for you?

Be Clear on What Is and What Isn’t Shared In: It’s important to remember that a health share is not insurance. Health share memberships don’t share in every kind of medical expense: you must take an active part in reviewing how the health share works, what processes you need to follow, and what expenses are eligible for sharing. For example, if you are interested in becoming a Member of Altrua HealthShare, make sure to thoroughly read the membership guidelines specific to the membership level you need and contact a Member Services Representative at 1.888.244.3839 if you need more information. If you’re not currently an Altrua HealthShare Member or would like to review your level of membership, you can reach a Member Services Representative at 1.888.244.3839 or by going to this contact form.

Budget for Medical Expenses: While you’ll likely find great savings by going with a health share, you will have out-of-pocket and member responsibility amounts that are outside of your monthly membership contribution. Make sure to be putting money aside each month so that your budget is ready if you have unexpected costs.

Do the Homework Before Big Procedures: Many medical costs can be negotiated. Work with your Member Services Representative for health care needs that you know are upcoming for significant cost savings. Again, being part of a health share means that you actively take part in overseeing your medical expenses and in communicating with your care provider’s office.

As you consider ways to get your medical costs back into line with your income and budget, explore just what a health share like Altrua HealthShare can do for you. While you can enroll as a Member of Altrua HealthShare at any time, the open enrollment season could be a great time for you to make the change to greater savings, better flexibility, and become a part of a like-minded health community that cares for each other.

¹ https://www.cms.gov/data-research/statistics-trends-and-reports/national-health-expenditure-data/historical#:~:text=U.S.%20health%20care%20spending%20grew,trillion%20or%20%2413%2C493%20per%20person.
² https://www.forbes.com/sites/brucejapsen/2024/01/12/unitedhealth-group-profits-hit-23-billion-in-2023/
³ https://penncapital-star.com/uncategorized/americans-suffer-when-health-insurers-place-profits-over-people/
⁴ https://hsaforamerica.com/blog/why-is-health-sharing-so-cheap-vs-health-insurance/#:~:text=Health%20sharing%20typically%20saves%2040%20to%2050%20percent%20per%20month%20vs%20the%20unsubsidized%20cost%20of%20a%20traditional%20health%20insurance%20policy.