Dave Ramsey covers such topics ranging from Christian Health Insurance and dental insurance. Chances are high that you’ve heard of Christian Health Insurance through a friend, from the internet, or one of the episodes of The Ramsey Show. However, what exactly is Christian Health Insurance? This and many other questions will be answered in this article.
What is Christian Health Insurance?
Dave Ramsey believes in the efficacy of Christian Health Insurance. But what exactly are they?
Christian health insurance is not exactly a health insurance plan. Rather, this is a Christian medical health sharing plan where the partakers are mostly Christians who share the cost of each other’s medical bills.
Christian Health Insurance is a concept that sprang up due to the increase in the cost of insurance premiums and health care costs. The patronage for this alternative insurance has increased over the years as Americans are beginning to seek more flexible and cost-effective alternatives.
Judging by its literal meaning, there’s nothing called “Christian health Insurance,” but it’s called Christian health share ministries. These services offer pharmacy and medical services, with some offering extensive cover for very expensive illnesses.
Also, Dave Ramsey noted that Christian health sharing ministries are cheaper than the average health insurance premiums. He believes that if you’re willing to save money on your health insurance, then this is the best option to opt for.
Are Payment Plans Alternatives to Health Insurance?
Editor note: One option to consider is to call your medical doctor to see whether their medical office offers payment plans. These payment plans can help people who are living pay check to pay check avoid a shock that could push that individual into considering filing for bankruptcy.
What Does Dave Ramsey Think About Health Insurance?
In Dave Ramsey’s article titled “Do I really need health insurance?”, Dave Ramsey made some salient points that’ll give you a peep into his belief on health insurance.
In that article, Dave explains that everyone needs health insurance as it helps to protect against financial misfortune that may arise due to a humongous medical debt. And since the major cause of bankruptcy in America is medical debt, it’s important to take concrete steps to prevent this. Also, injury and illnesses can put us out of work for a prolonged period, which can leave us in a precarious situation where there’s an increase in expenses and a massive shortfall in income.
Dave believes that health insurance is very important if you want to have a good financial plan. As such, he recommends some interesting options. One such option is HSA. Let’s take a dig into what it entails:
HSA
Some points Dave Ramsey noted about HSA include:
- This policy features low premium and large deductible
- It offers you a great way to properly control your premiums and also save enough to cover emergency medical fees.
- It helps to save as much as 70% on monthly insurance premiums.
- You can always withdraw money from your HSA account tax-free
What does Dave Ramsey think about Christian Health Insurance?
In one of Dave’s shows, he shared his detailed opinion on Christian Health Insurance. He reiterated that he endorses the insurance, but users need to understand its merits and limitations. While he claimed that they always meet up with their financial obligations, he also noted that they have maximums, above which they’re not obligated to cover a medical bill.
Dave explained that it has existed for over 30 years, and the scheme has survived without any major scandal due to its highly sophisticated structure of operating.
He also explains some of its benefits, which is that it meets regulatory guidelines, and offers some tax executions.
Merits of Christian Health Insurance
Some noteworthy benefits of having a Christian Health Insurance plan are:
- They are cost-effective
- Membership is not canceled for having a critical medical condition
- There are no lifetime or annual limits
- A plan may cover funeral expenses
- The employment status and location of the residence does not affect membership
- Organizations that provide this health insurance plan are usually transparent in their dealing.
Are there Alternatives to Christian Health Insurance?
If the Christian Health Insurance doesn’t seem to suit your health needs, then you may apply for an alternative. Here are some alternatives to try out:
1. Point of Service Plan
A point-of-service plan gives you a diverse range of options. You can choose to use hospitals, doctors or/and other health care providers that aren’t within the network of the insurance provider. However, using service providers that are outside the insurance network attracts extra charges.
2. Preferred Provider Organization
This is a group health insurance policy. With this type of plan, employees of organizations make use of networks with preferred hospitals and doctors. Here. employers contract specific health providers and sign an agreement with them at a discounted rate to provide health services to employees.
Employees themselves have a specific deductible that they’re taxed to meet before they can ensure needed medical bill coverage.
This option is particularly good for:
- Small businesses with employees
- Enterprises that want a vetted health organization to handle employees health care
- Businesses that want to offer better balance
3. Indemnity Health Insurance
In this plan, the subscriber first pays for his/her medical bills out of their pocket, then they’ll file for reimbursement on the expended amount.
4. Exclusive Provider Organization
This type of health insurance has some resemblance to HMO as they both use a network of health providers except with there’s an emergency. In this case, there’s a Primary Care Physician that first refers policyholders to specialists.
Summary
With the cost of insurance rising daily at an astronomical rate, it’s imperative to find suitable alternatives that can protect our health. Christian heal insurance is a very viable and noteworthy alternative to the traditional insurance plan. This article contains Dave Ramsey’s opinion on Christian Health Insurance.