Health Sharing vs. Insurance: What's the Difference and Which Is Right for You?

Health sharing is the healthcare option that most people have never heard of — even though it's been around since the 1980s and serves over 1.5 million Americans.

What Is Health Sharing?

Health sharing organizations (also called Health Care Sharing Ministries or HCSMs) are communities of people who voluntarily share each other's medical costs. You pay a monthly "share amount" — similar to a premium — and when you have a major medical need, the community shares the cost.

The major health sharing organizations include Sedera, Zion HealthShare, OneShare Health, Medi-Share, Knew Health, and Liberty HealthShare.

How It Differs from Insurance

**Not insurance**: Health sharing is voluntary cost-sharing, not a contractual guarantee of payment
**No network restrictions**: See any doctor or hospital — no "in-network" vs. "out-network"
**Medical underwriting**: Unlike ACA plans, health sharing requires medical disclosure and may have waiting periods for pre-existing conditions
**Lower monthly costs**: Typically 40–60% less than comparable insurance premiums
**Initial Unshareable Amount (IUA)**: Similar to a deductible — the amount you pay before sharing kicks in

Monthly Cost Comparison (Family of 4)

Traditional PPO insurance: $2,500–$4,000/month
ACA Bronze HDHP: $1,200–$2,000/month
Health sharing: $400–$900/month

Pre-Existing Conditions: The Key Question

Each organization handles pre-existing conditions differently:

**Zion HealthShare**: Covers diabetes and most conditions from day 1. No waiting period.
**Sedera**: 36-month phase-in period. Great if you're healthy.
**OneShare Health**: 1-year waiting period on most plans.
**Medi-Share**: 3-year phase-in. Healthy lifestyle discounts available.
**Knew Health**: Covers pre-existing with some limitations. Strong bill negotiation (46% average reduction).

If you have chronic conditions that need immediate coverage, a hybrid approach — DPC for primary care + ACA catastrophic plan for specialist/Rx + HSA — may be a better fit.

Who Health Sharing Is Best For

Healthy families overpaying on PPO/HMO insurance
Self-employed individuals without employer coverage
Families priced out of the ACA marketplace
Anyone who wants lower monthly costs and doesn't mind some trade-offs

Who Should Keep Traditional Insurance

Anyone with a major medical event coming (pregnancy, planned surgery)
People with multiple chronic conditions requiring specialist care
Anyone uncomfortable with the voluntary nature of sharing

Take our free savings assessment to see which path makes the most sense for your family.

Health sharing plans are NOT insurance and do not guarantee payment of medical bills. Kailo provides educational information only.