There are many differences between health sharing plans and traditional health insurance policies. One of the most obvious differences is that most health insurance plans in the United States are regulated by the Affordable Care Act, while health sharing plans are not. ACA plans must follow several regulations to comply with federal law. Some of these regulations were intended to benefit policyholders, such as guaranteed coverage for the “ten essential health benefits.” However, some of the regulations that were created with the best of intentions have arguably caused more harm than good. 

For example, ACA plans are required by law to accept individuals with pre-existing conditions. While this might seem like a highly ethical decision at first, it causes a knock-on effect that makes insurance more expensive for everyone else. In a truly free-market environment, these individuals would be considered too risky for insurance companies to cover, as their medical costs clearly outweigh any premiums or deductible costs they may pay. 

In other words, chronically ill individuals represent a net drain on the entire “community” of policyholders. This means that healthy individuals who have been very careful to lead healthy lives and make responsible lifestyle decisions end up taking on the financial burden of individuals who would previously have been seen as “uninsurable.” In addition, more government regulation means less competition between insurers – which inevitably leads to higher prices for consumers due to the laws of supply and demand. 

Another major difference between health sharing plans and traditional insurance policies is the existence of doctor networks. Many sharing plans have no doctor networks, allowing you to choose the providers that fit your unique needs and considerations. In contrast, various insurers will limit your choices, forcing you to abandon your first choices and settle for other providers instead. This can make switching providers or insurance policies highly tedious. 

Finally, traditional health insurance plans can lead to higher costs when compared to health sharing plans. This is due to a combination of deductibles, premiums, and copayments. Not only do you need to pay higher deductibles and premiums with traditional health insurance plans, but you also need to worry about copayment costs. These are additional fees that you must pay every time you visit a doctor or a provider. While copayments may only cost $20 or $30 per visit, they represent yet another fee you need to worry about. This system of copay expenses disproportionately affects lower-income households and discourages them from getting the health care they so desperately need. There are no copayments with many health sharing plans.