Updated July 25, 2007 (first published May 7, 1999) (David Cloud, Fundamental Baptist Information Service, P.O. Box 610368, Port Huron, MI 48061, 866-295-4143, fbns@wayoflife.org; for instructions about subscribing and unsubscribing or changing addresses, see the information paragraph at the end of the article) –

In 1999, I sent out a request for information from those who have had personal experience with medical sharing plans. We had had family health insurance through Blue Cross of Washington and Alaska for the six or so years prior to that. After moving to Oklahoma in 1999, we were informed that Blue Cross of Washington could no longer cover us and we would have to get another policy in Oklahoma (each Blue Cross associate is a separate entity). We learned that Blue Cross of Oklahoma would cost more than we had paid in Washington for less coverage. As we investigated the options, we became impressed that there are good alternatives, at least for many Christian families, than standard health insurance.

I received a flood of invaluable responses to my request for help in 1999 and have continued to receive responses over the years since then. The testimonies I have received represent hundreds of years of experience with the various programs. Since many have asked me to share my findings, I will do so in the following report. Please note that I realize that family situations vary greatly. If you are satisfied with traditional health insurance, that is fine. If you are satisfied with a certain medical sharing plan that I do not highly recommend in my little report, that is fine, too. I am not trying to sell anything, and I certainly don’t want to debate anything. I am merely sharing the information I have collected for those who might find it useful. I have tried to keep the information up-to-date, but the reader must understand that the following facts can easily change without my knowledge.

STANDARD HEALTH INSURANCE COVERAGE

The main problem with standard health insurance coverage is that it is extremely expensive and even with high monthly premiums the family is left with many medical bills that are not covered. Our family health care policy in Washington cost roughly $450 per month. Over a period of 10 years, a policy like that costs $54,000. That is a lot of money. In our family’s case, we ended up paying for most of our health costs ourselves in spite of paying the $450 per month, because most of our medical costs involved expenses at or below the annual deductible, uncovered prescriptions, etc. In practice, therefore, we were paying $5,400 per year for health insurance plus we paid for most of our own health care. Of course, if we had had expensive medical needs during that period, the picture would have changed dramatically. Our family’s situation is probably typical, though. Also, when paying for standard health insurance policies, the Christian is helping pay the large medical expenses incurred by the unhealthy lifestyles of unsaved people (drunkenness, shootings, stabbings, beatings, child abuse, venereal disease, drug abuse, etc.).

In the replies I have received, there were four that suggested various twists on the standard health insurance coverage plan. Since someone might find these helpful, I will include those replies are as follows:

“I received your inquiry about health insurance. For years our family had LAM-Good Samaritan and we never used it because the deductibles were so high. My wife and four kids were always going to the clinic for check-ups, vaccinations, etc. Finally I had enough and asked our church to switch us to Aetna-US Healthcare. For about $100 a month more we now have no deductibles, only $2 co-pay, and this includes prescription and most dental. Now we can go to any neighborhood doctor (and dentist). We could not get dental with LAM). Personally I think we are much better off now.”

“I really don't know anything about [medical sharing plans], but as far as insurance goes... Here in NY when you're considered self employed (which I think you might consider yourself) you can join a local chamber of commerce and buy insurance thru them. We have a family of four and we pay just under $400 a month. I don't know if you can do that in OK or not, but if you can, you might want to check it out. Just a suggestion.”

“You may check into special programs with adjusted rates. In our area of Pennsylvania, Blue Cross charges lower rates for families with lower incomes. The program here is called 'Special Care.' I find it to be a good plan. It does not cover prescriptions (I am always sure to ask the doctor for samples) but it only costs us $145 per month for a family of four. Less then half of what your increase will be.”

“I am with Golden Rule. 1) Good prescription plan. 2) High deductible ($1500 then covers 100%). 3) Reasonable rates $3200 per year); for similar coverage with Christian Brotherhood, I would pay over $3600.”

GOLDEN RULE is an insurance company but its policies are a little different than the standard plans. They have a Basic Plan that is described briefly in the previous paragraph. They also have an interesting plan called MSA for the self-employed, which combines high-deductible major medical insurance with a tax-free savings account. The subscriber uses the savings account to pay the deductible and coinsurance. Interest accumulates tax-deferred and, if used for medical care, is never taxed. [Golden Rule, 7440 Woodland Dr., Indianapolis, IN 46278-1719. 800-444-8990 (voice), 618-943-5063 (inquiries), www.goldenrule.com (web site)]

MEDICAL SHARING PROGRAMS

One serious alternative to standard health insurance is a medical sharing plan. In short, the participants in the plans assume responsibility for paying the medical expenses of the program members. This is done by averaging the cost of health care and dividing that into a monthly premium or pledge that each participant is required to make. Instead of pooling the money, the participants send their monthly pledge directly to another participant who has a current medical expense. One man said, “I would much rather write a check to an individual every month as opposed to an insurance conglomerate!” The participants pledge that they are church-going Christians and that they abstain from alcohol and tobacco. This helps keep the health costs lower than those of the general population.

Five medical sharing programs have been recommended to me, and I will share the basic overview of each program and some of the responses I have received about them.

It is important to note that several dozen people shared their personal testimonies with me about these programs, and all but two or three are generally satisfied and find the medical sharing programs equal or superior to standard health insurance policies.

There are a couple of downsides to any of these programs. First is the problem of dealing with healthcare providers without standard insurance. Let me hasten to say that most of the respondents who wrote to me about these plans said that this is not a serious problem. Many hospitals and doctors already have experience with one or more of the medical sharing plans. Others can be taught about the program. On the plus side, it is not uncommon for hospitals and doctors to give discounts (as much as 30%) because they are being paid by cash rather than having to deal with an insurance company. This can be a serious problem, though, if expensive health care is needed and the hospital and doctors do not want to perform the work without a substantial down payment.

Following are some of the comments about how health care providers accept the policies:

“Good Samaritan was in place for our last two children and several other necessary procedures. While they pay in 60-90 [days], the hospitals had no problem accepting it. I can recommend it heartily!”

“We have not had any problems with our children that were born under their medical program [Christian Brotherhood]. What hospitals and others have to do is bill you and you pay off the bills as the money comes in. Never had a problem.”

“We explain that we do not have health insurance, but the doctors and hospital we have worked with have understood and have been cooperative and understanding. Both have given us up to a 30% discount off the total bill.”

“Most hospitals treat you as a 'self-pay' patient and require a substantial payment prior to treatment unless it is an emergency. Most doctors offices are unaffected by it and will put you on a monthly payment program. When the funds do come in from Brotherhood, you can then pay off all your bills and recoup the payment the hospital required.”

“It takes time to acquaint hospitals, etc., with the concept but they soon see the advantage. We recommend it totally.”

“The few people I know who use these plans have been completely pleased. (I have one couple in my church who used one of these plans.  He recently died of cancer after a lengthy hospital stay.  His wife reports that she has had little trouble with getting her bills paid.) However it is important to understand that sharing plans ARE NOT insurance therefore there is nothing for hospitals to accept. When you are admitted to a hospital you are considered non-insured / self-pay.  This could limit the care that you receive.  For instance; if you require a rather expensive procedure that is not considered life threatening a hospital could refuse to perform it based on your ability to pay.  Also they may incase of life threatening cases require you to apply for public assistance / welfare.”

Another potential problem with at least some of the medical sharing plans is associated with MATERNITY NEEDS. Some of the plans are very restrictive about what they cover in this area. One man warned: “[Some of the sharing plans] offer little or no financial help for maternity. And if there are complications for mother or child in childbirth, or within the first six months of the child's life, watch out, you could be stuck with a bill of tens of thousands, if not hundreds of thousands of dollars, with no way to pay it. I know this from first-hand experience.”

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Now we will look individually at the five medical sharing programs that have been recommended to me.

CHRISTIAN HEALTHCARE MINISTRIES [P.O. Box 3948, Akron, OH 44314. 800-269-4030 (voice), 330-753-6886 (fax), cbn@cbnews.org (e-mail), www.cbnews.org (web site)]

This was once the largest Christian medical sharing organization and went by the name of Christian Brotherhood, involving some 80,000 participants, but they were down to some 10,000 subscribers as of July 2001. The organization has gone into and out of receivership. I personally know a pastor who was never paid the $3,000 he was owed by Christian Brotherhood.

I received at least 30 responses from people who have used Christian Brotherhood. Many said they were satisfied with the program in general, but only two or three were completely positive about it. I heard from many that have switched from Christian Brotherhood to other programs and are more satisfied. Several others who are currently members of Christian Brotherhood recommended that I look into other programs instead of going with Christian Brotherhood.

On June 11, 2007, a pastor wrote: “My wife and I have been members since '93, and found no problems
whatsoever. For the two of us, with a $1K deductible, we pay a total of $135/mo. Since both of us also have Medicare, if and when we have to use their program for health care, our Medicare covers the deductible,
therefore, there will always be a zero balance on our part. They also offer a comprehensive education into how to negotiate with hospitals regarding a payment schedule that can lower your expenses a great deal.”

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GOOD SAMARITAN HEALTH PLAN [P.O. Box 279, Beech Grove, IN 46107. 317-894-2000 (voice)]

I received the following from Good Samaritan on October 15, 2003:

“Dear Sirs: It has been brought to our attention that you have listed the Good Samaritan Health Plan in your web-site as an alternative to health insurance. Although we appreciate you listing Good Samaritan and the kind words, we would like for you to remove this from your web-site do to the fact that as of October 1999, Good Samaritan was no longer a sharing plan. Good Samaritan Employer’s Welfare Association does offer a regular group health plan for Christian employers but it is a traditional health plan and not an alternative sharing plan. Therefore, we are requesting that you remove their name. Thank you for referring Good Samaritan in the past. Barbara Hood, Good Samaritan Employer’s Association.”

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SAMARITAN MINISTRIES [CHRISTIAN HEALTH CARE NEWSLETTER, P.O. Box 3618, Peoria IL 61612-3618. 309-689-0442 (voice), 888-268-4377 (toll free), http://www.samaritanministries.org (web site), infopac@smchcn.net (e-mail)]

Under the Samaritan Ministries program (not to be confused with Good Samaritan, mentioned previously), the cost is $85 per month for single, $170 for married, and $195 for a family with three or more children. There is also a $150 per year fee that goes to the operation of Samaritan Ministries. The subscriber pays for the first three medical incidents per year under $300, and the program shares the cost of treatments over $300 (up to $100,000).

The subscriber receives a newsletter each month listing the needs of fellow subscribers. He also is given the name and address of the specific individual or family to whom he is to send his monthly share. The subscriber sends his gift and a note of encouragement. When the subscriber has a medical incident, he sends the bills to Samaritan Ministries for verification and publication.

Samaritan Ministries began publishing medical needs in 1994 after three years of research and planning. The Samaritan Ministries program was highly recommended to me by several people and there were no serious problems mentioned. One pastor described it as "an extremely well managed program."

One interesting testimony about Samaritan Ministries is as follows:

“My wife nearly died about two years ago in child birth.  Her bladder and uterus ruptured in the middle of labor and she had to have an emergency C-section.  She went through 19 units of blood and was in ICU for 36 hours.  She had to have the services of surgeons, ICU reconstructive surgery on the bladder etc. etc. and follow up visits. 

Samaritan's Ministries fellow brothers and sisters on the subscription service paid about $28,000.  We had a balance of about $5,000 and we are paying that on our own.  And now that is down to $3,000 about two years later.  The payment was timely, the encouragement was great as countless people prayed for my wife's healing and for God's provision. The LORD surely has provided without the world system of insurance getting involved.  Our costs as a family with four children is $120 per month. This was a great cause for testimony as the hospital knew we did not have insurance from the very beginning.  After the hospital stay, social services contacted us to try to help and I set up an appointment with them.  At the interview I explained to them that God's people would provide help and already were.  They were skeptical.  When the bills are 100% paid off, I'll be calling the hospital to let them know how God provided.  I did already let many people know that God's people were paying the bills, not some impersonal insurance agency.  This has been a great testimony for many.”

SAMARITAN MINISTRIES IS WHAT OUR FAMILY DECIDED TO JOIN. IF ANYONE READING THIS ARTICLE SIGNS UP FOR SAMARITAN MINISTRIES, IT WOULD BE VERY HELPFUL IF YOU WOULD NOTE THAT YOU WERE REFERRED BY BROTHER CLOUD. THEY WILL GIVE US A DISCOUNT ON OUR MONTHLY PAYMENT FOR EACH REFERRAL. We have been with Samaritan Ministries for eight years (since 1999) and have been very pleased with their service.

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CHRISTIAN CARE MEDI-SHARE [P. O. Box 1779, Melbourne, FL 32902. 800-374-2562 (voice), 407-726-8016 (fax), info@tccm.org (e-mail), http://medi-share.org (web site)]

This program was also highly recommended to me by some of the respondents, and most had experience with other medical sharing plans before changing to Christian Care Medi-Share. I received two unfavorable comments about this program, though. One respondent, a missions secretary in a large church, said Christian Care Medi-Share is “beneficial and professional” and they “communicate thoroughly.”

The following comment was made by the pastor of a church with a larger staff who used Christian Brotherhood for eight years before changing to Christian Care Medi-Share: “With Christian Care the coverage is much better than with Brotherhood. Also the costs are less; that is why we went with them. However, we have found them to have a red tape trail that leaves you hanging to get payment from them. In the meantime your hospital and doctors are left hanging. This will bring threats from the doctors or hospitals. In short, we have found it much better to pay a little, $5 or so, on each bill each month until Christian Care gets around to doing something or telling you something. You will also have to fight with them to get coverage. They are not as willing to help in problems. However they are very good at negotiating with doctors and hospitals to get the bill reduced, once they decide they have to pay” (Pastor Doug Hammett, dhammett@xc.org).

Another man wrote on June 18, 2007: “We have been with Christian Care Medi-Share for 7 years. I came across your publication looking for an alternative to CCMS. In the 7 years we have been with them we have never received any aid from them at all. We have paid thousands of dollars worth of medical bills on our own. The only thing that kept us from immediately canceling our membership was the fact that at least we were helping someone else, presumably. A couple of years ago my wife developed a loss of hearing condition which required an MRI to rule out a possible tumor. Fortunately there was none. Three years ago our son suffered a broken collar bone. Friends of ours with a family of 7 children in the past year had a major medical problem which cost them 10’s of thousands. It took them a very long time to before they received help.”

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BLESSED ASSURANCE BULLETIN [P.O. Box 5392, Lubbock, TX 79408. 800-328-4068]

This program was not recommended to me personally by anyone, but I received information from them directly. Blessed Assurance Bulletin has been in existence since 1994 and is similar to the plans already discussed. The monthly subscription varies slightly, because it reflects the actual cost of the subscribers’ medical bills each month. Subscribers send in copies of their bills to Blessed Assurance Bulletin; the bills are totaled and divided among the subscribers. The current cost is between $80 and $95 per subscriber. A family of two pays two subscriptions per month. A family of three or more pays three subscriptions. Thus for a family of three or more, the cost is between $240 and $285 per month. Blessed Assurance does not raise the monthly share more than $5 from one month to the next. Blessed Assurance publishes up to $100,000 per incident for each subscriber, and the subscriber pays the first $500 per calendar year. Pre-existing conditions related to heart, asthma, cancer, and diabetes are limited to a maximum of $10,000 per year. Blessed Assurance does not publish bills for congenital or birth defects.

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THE BEST ALTERNATIVE MIGHT BE A COMBINATION OF TRADITIONAL/ SHARING/ SAVING

Samaritan Ministries recommends a combination approach to health care coverage: Combine the medical sharing plan with a high deductible major medical policy as a backup for any catastrophic medical needs. That is a good approach.

AN EVEN BETTER TWIST ON THIS COMBINATION APPROACH IS TO ADD A SAVINGS PLAN TO COVER DEDUCTIBLES, DENTAL, ETC. This plan was described to me by a pastor as follows:

“I recently took a church near Pittsburgh, Pennsylvania.  In preparing for the move I talked to several Pastors about the insurance coverage they had.  Through this, I was able to set up a program that I feel is the best value for my family and the church.  I use a combination of Samaritan Ministries International and Mutual of Omaha to provide major medical care.  Here is a breakdown:

“The church gives me $100 a week for a total of $400 a month. I place this money in a church account called Pastor's Medical.

“Samaritan Ministries (not to be confused with Good Samaritan) gets $120 a month for their program (which covers me up to $100,000.). Mutual of Omaha gets $35 a month for a 100K deductible major medical policy (100k to 1 Million coverage). The balance ($245) stays and builds in the account to be used for things that are not covered in the above policies.

“Covered incidents that are more than $300 are sent directly to Samaritan Ministries. They pay the bill. Office visits, medications, dental, eye care, etc. are paid as they are required out of the account portion.

“If the Lord blesses us with good health, and the medical account builds up, I can take a portion and move it into an IRA or something else tax deferred if I wish.  It's our money to use as we see fit.  Note that dental is hardly never covered by Blue Cross Blue Shield, but this covers it. No co-pays to worry about either.

“This combination plan is absolutely terrific and recommended to me by three pastors who are also using this method.”

POSSIBILITIES FOR HEALTH COVERAGE FOR THOSE WITH PRE-EXISTING CONDITIONS OR WHO ARE OTHERWISE UNINSURABLE THROUGH THE PREVIOUS PLANS

DISCOUNT MEDICAL CARDS

I received the following information from Bob Sharpe:

“I'm a Baptist preacher. I also have an insurance license, and I've sold health insurance part time for eight years. There is another option concerning health insurance. I don't recommend it for people who have other options, but it is good for people who are uninsurable. That is a discount medical plan. Most people don't know this, but the discounts the insurance companies get from health care providers can be as much as 90%. ... The legitimate discount cards work with companies that negotiate rates that are somewhat similar to rates the insurance companies get at the hospitals. Although we have seen discounts up to 90% at hospitals, they usually fall in the 70% range. Since the discount card industry started a few years ago, a lot of people jumped into it with promises they could not fulfill. Most of the cards do not work well for doctor visits, but for hospital stays they can be a lifesaver for the uninsurable. I market a card that works well in hospitals. It makes a lot of sense for those who are uninsurable and can't get health insurance at any cost, and it is available in most States. You can see more information at www.EconomyHealthCare.com.”

AARP MEDICAL ADVANTAGE PLAN

Pastor Terry Coomer wrote:

“One of the real problems is preexisting conditions. The Med Share programs you have listed disqualify or severally restrict people with pre existing conditions. Many Pastors and their families between the age of 50-64 are in this high risk category because of health issues. One plan that will cover them is through AARP. It is called the AARP Medical Advantage Insurance Plan. There are three different plans, Gold, Silver, Bronze. Each costs a little less with a little less coverage. The rates are reasonable. There is a $2000 per year prescription plan. AARP Health Care Options, P.O. Box 64906, St. Paul, MN  55164-9840, 1-866218-8607, www.aarp.com. This is an alternative for those who are deemed uninsurable by other means and the Med Shares.”

CONCLUDING NOTE: PLEASE ADDRESS ANY AND ALL QUESTIONS DIRECTLY TO THE SPECIFIC ORGANIZATION. DAVID CLOUD AND WAY OF LIFE LITERATURE DO NOT REPRESENT ANY OF THESE ORGANIZATIONS AND CAN PROVIDE NO FURTHER INFORMATION. WE MAKE NO GUARANTEE THAT THE INFORMATION LISTED IS UP-TO-DATE.