An obscure health insurance alternative is seeing tremendous growth. But there’s a catch.
Fed up by unaffordable costs and insurance denials, more and more Americans are fleeing the conventional health care system. Many are seeking to cut out the government and insurers entirely by pooling their money together to cover their own bills, turning to what are called health cost-sharing ministries. Originally a faith-based alternative for those with religious objections to traditional insurance, this uniquely American way to pay for medical care has been secularizing and surging in popularity over the last decade, alongside growing distrust in our health system.
These plans superficially resemble health insurance and often sell themselves as a more affordable way to cover medical costs. Members pledge to cover each other’s health care expenses, typically making monthly payments to the organization and then submitting their bills to the group when they receive care. They also commit to a set of ethical or moral principles defined by each group, usually reflecting their origins in Christian churches.
These groups have been around for decades; Christian Healthcare Ministries claims to be the first in the nation, founded in 1981, and traces the arrangement’s structure to biblical roots. But for years, health care sharing ministries remained a niche product. By the mid-2000s, membership was a mere 200,000 people, according to the best estimates. (Because they are largely unregulated, data on these plans is limited and may undercount actual enrollment.)
