#067: Traditional Insurance vs. Health Sharing Arrangements

2018-04-09

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Devin and John explore one popular alternatives to traditional health insurance: health care sharing arrangements. John has about 20 employees, and he provides health insurance to the employees (but not the families.) This is a high-deductible plan, so the employee still pays $3,000 to $4,000 per year before the insurance kicks in. So, as a general rule, John knows that he (and his employees) will see virtually no benefit from this very expensive coverage. Because a health care sharing...

Devin and John explore one popular alternatives to traditional health insurance: health care sharing arrangements.

John has about 20 employees, and he provides health insurance to the employees (but not the families.) This is a high-deductible plan, so the employee still pays $3,000 to $4,000 per year before the insurance kicks in. So, as a general rule, John knows that he (and his employees) will see virtually no benefit from this very expensive coverage.

Because a health care sharing arrangement is not traditional health insurance, there are some important secondary results. For example, these plans don’t make you eligible to use a health savings account (HSA). It also doesn’t count as health insurance to be deducted as self-employment insurance premiums on your taxes.

Bottom line: if you are out there in the open market looking for health insurance, you should at least explore these health care sharing arrangements.

For more information, visit the show notes at http://www.bigpictureretirement.net/067

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