You’re confusing fully insured plans with self-funded plans. Fully-insured plans are where you pay a premium and if everyone pays more than they cost the company, the company wins, and vice versa. Self-funded plans are where the company (or in this case, the religious order) just pays their own claims as they arise and they don’t send premiums anywhere except to their own savings account. There’s no risk pool except their own employees and they pay everything for them.
Never has reading about insurance been so delightful. We ditched insurance a year and a half ago and opted for health sharing (via Zion). Excellent option for someone who does not have chronic health needs (ie disbetes) and treats most all health issues with holistic medicine at home. But we still get preventative care covered (ie annual check ups etc). Curious if you’ve compared the benefits of health sharing with your health insurance approach. Anyhow, excellent article and writing. Love your substack.
Hi Paola, yes, health care sharing is great. I ran the trade group for sharing orgs for six years and now sit on the board of one. So I think they're amazing for the right individual. But they aren't the right fit for every employer or family - so it's very important to have all options on the table! Thanks for reading!
What a great story! I won't pretend I understood the details, but I always enjoy your perspective.
Thanks Moorea!
Insurance always has to make money... so the contributers must pay more than the company spends- or the company would collapse? 🤔
You’re confusing fully insured plans with self-funded plans. Fully-insured plans are where you pay a premium and if everyone pays more than they cost the company, the company wins, and vice versa. Self-funded plans are where the company (or in this case, the religious order) just pays their own claims as they arise and they don’t send premiums anywhere except to their own savings account. There’s no risk pool except their own employees and they pay everything for them.
Never has reading about insurance been so delightful. We ditched insurance a year and a half ago and opted for health sharing (via Zion). Excellent option for someone who does not have chronic health needs (ie disbetes) and treats most all health issues with holistic medicine at home. But we still get preventative care covered (ie annual check ups etc). Curious if you’ve compared the benefits of health sharing with your health insurance approach. Anyhow, excellent article and writing. Love your substack.
Hi Paola, yes, health care sharing is great. I ran the trade group for sharing orgs for six years and now sit on the board of one. So I think they're amazing for the right individual. But they aren't the right fit for every employer or family - so it's very important to have all options on the table! Thanks for reading!