Differences between Traditional Health Insurance and Medical Cost Sharing
The main difference between traditional health insurance and medical cost-sharing is the approach to healthcare. Traditional health insurance is a product offered by an insurance company that shifts the costs to the company. In contrast, medical cost-sharing is a community-based healthcare-sharing approach that does not shift the cost back to the company (worried about your bills not being covered...see the previous section).
Another key difference is in the cost. Traditional health insurance can be expensive, with one-size-fits-all coverage and insurance company profits. Medical cost-sharing offers affordable monthly sharing amounts. Those monthly amounts, simply your cost per month, go towards what it should be paying medical bills and not profit margins. Do medical cost-sharing companies make money? Sure, they are a business, but their model eliminates waste and helps coordinate care, keeping prices down.
One critical difference is that state and federal laws regulate traditional health insurance, whereas medical cost-sharing companies are not. This means that traditional health insurance companies are subject to specific regulations, such as the requirement to cover certain medical expenses and caps on profit margins (to make more money, they must charge more or pay out less). At the same time, medical cost-sharing companies are not subject to the same regulations.
Supplemental Insurance
Supplemental health insurance typically covers services that your other health plan does not, such as dental and vision costs. Supplemental is also used to add more coverage to an existing plan, paying you on top of what your other plan covers, when you experience what your specific supplemental policy is covering—such as cancer, accident, or hospitalization. Because chances are, your medical insurance plan doesn't cover everything. Completing your coverage with supplemental plans can save you money and help protect against unexpected costs.
A better understanding.
Health insurance can be a confusing and complex topic. With medical cost sharing groups being a great option and on the rise, it's essential to understand the difference between traditional health insurance and medical cost sharing. Let's discuss the critical differences between these two options.
Traditional Health Insurance
Traditional health insurance is a product offered by insurance companies (such as BCBS, United Healthcare, Aetna, etc.) that helps individuals pay for their medical expenses. With traditional health insurance, you pay a monthly premium in exchange for coverage of certain medical expenses, such as doctor visits, hospitalizations, and prescription medications. Insurance companies also often have networks of healthcare providers that they work with, and you may be limited to seeing providers within that network.
Medical Cost Sharing
Medical Cost Sharing (such as Redirect Health, Christian Healthcare Ministries, Samaritan, etc.), a simpler alternative to traditional health insurance, involves members paying a monthly sharing amount that is used to help share the medical expenses of other members. Unlike traditional health insurance, medical cost-sharing groups often have fewer restrictions on healthcare providers, allowing members to choose any healthcare provider they prefer. It's also reassuring to know that both traditional and medical cost-sharing groups have additional companies backing them in the event of unforeseen catastrophic loss, ensuring that even your biggest medical bills will be covered.