Faith Based Healthcare
WHAT IS FAITH-BASED COVERAGE?
Faith-based healthcare is an alternative to traditional health insurance that is offered through nonprofit charities with a religiously-oriented purpose. These plans, also known as "health sharing ministries" or "healthcare sharing ministries," work by members contributing a monthly fee into a pool of funds that is used to share healthcare costs among members. When a member receives a bill from their healthcare provider, other members of the plan contribute money to help pay the bill.
Faith-based healthcare functions similarly to credit unions, in that they are community-oriented and membership-driven nonprofits. Members of these plans pay a much lower monthly fee compared to traditional insurance premiums, and the rest of the members will contribute towards their bill if they get sick.
It's important to note that faith-based healthcare is not ACA-compliant and is exempt from the mandates of the Affordable Care Act (ACA). For example, these plans do not have to cover the 10 essential health benefits mandated by the ACA. However, they must still meet certain requirements set by the ACA, such as members sharing a common set of specific ethical or religious beliefs, plans not discriminating based on employment or residence, and an annual audit being subject to public request.
In summary, faith-based healthcare offers an alternative to traditional health insurance, with members contributing to a pool of funds that is used to share healthcare costs among members. While not ACA-compliant, these plans still must meet certain requirements set by the ACA to ensure fair and ethical practices.