Health shares (also called health care sharing ministries or health sharing plans) are nonprofit, community-based programs where members agree to help pay each other’s medical bills, rather than buying a regulated insurance policy from an insurance company. These are growing in popularity for people who are generally healthy to help reduce the cost of healthcare coverage.
How health shares work
You pay a monthly “share” amount into a community pool, administered by a nonprofit or ministry.
When you have an eligible medical bill, you submit it, and the organization uses pooled member funds to reimburse or pay those costs, according to its guidelines. Coverage is not legally guaranteed; it’s based on members’ voluntary sharing rules.
Most allow you to see almost any provider (no strict networks), and many expect you to ask for cash-pay discounts from providers.
By contrast, traditional insurance is a regulated contract: you pay a premium, and the insurer is legally required to pay covered claims under the policy terms and ACA/state rules.
Main benefits vs traditional insurance
Lower monthly cost
Health share contributions are often 30–60% lower than comparable unsubsidized insurance premiums, with many sources citing 40–50% savings as typical.
This can mean, for example, a family paying around 500–800 dollars per month in a share program versus 1,500 dollars or more for traditional insurance without subsidies.
Provider choice and flexibility
Most health shares have no in‑network requirement, so you can usually choose almost any doctor or hospital and shop around for price/quality.
There is typically year‑round enrollment rather than being limited to an annual open enrollment period.
Community and values focus
Programs are usually faith‑based or values‑driven nonprofits, emphasizing mutual aid, healthy lifestyles, and sometimes holistic wellness benefits.
Some members value the transparency of seeing how funds are shared and the sense of belonging to a community rather than paying a profit‑driven insurer.
Potential integration with other models
Many people pair health shares with direct primary care (DPC): DPC covers routine/primary care via a membership, and the health share is used for larger, unexpected costs.
Key tradeoffs and risks vs insurance
Understanding the downsides is critical before choosing a health share:
No legal guarantee of payment: Health shares are not insurance and are generally not regulated under the ACA; they rely on voluntary sharing and internal guidelines, so catastrophic or expensive claims might not be fully paid.
Limited or excluded benefits: Many exclude pre‑existing conditions (especially in the first year or more), certain services (e.g., some preventive care, maternity, mental health, or lifestyle-related issues), or anything contrary to the group’s moral rules.
Regulation and consumer protections: Traditional insurance must follow federal and state laws (e.g., essential health benefits, no lifetime/annual limits on essential benefits, preventive care without cost‑sharing), protections that usually do not apply to health shares.
Tax and employer issues: Health shares generally don’t qualify as traditional insurance for employer mandate or many tax advantages, though some people now pair them with HSAs to pay out‑of‑pocket costs.