The Problem with Health Share Plans

Health Share Plans seem appropriate for an April Fools day –if you thought you had health insurance, you may be in for an unpleasant surprise.  The problem with ‘health share’ plans is they often do not provide adequate cost/benefit coverage for those who rely on them.

NY Times: California Cracks Down on Alternative Health Plans

An excerpt:

[California] State insurance regulators accused a ministry offering an alternative to traditional insurance of misleading consumers….

The plans, which have become increasingly popular, rely on pooling members’ contributions to cover their medical expenses, but they are not required to meet standards for traditional insurance plans…

More than one million Americans have joined such groups, attracted by prices that are far lower than the cost of traditional insurance policies, which must meet strict requirements established by the federal health care law, like guaranteed coverage for pre-existing conditions…

State regulators are questioning some of the ministries’ aggressive marketing tactics, saying some consumers were misled or may not understand the lack of comprehensive coverage in the case of a serious illness or conditions that the ministries may not be willing to cover.

From The Onion

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