Health Insurance vs Health Sharing: Which Is Right for You?

If you're self-employed, a 1099 contractor, or don't have access to employer-sponsored coverage, you've probably come across two main options: traditional health insurance and health sharing ministries. Both can help you manage medical costs, but they work very differently. Here's what you need to know before you decide.

What Is Traditional Health Insurance?

Traditional health insurance is what most people think of when they hear "health coverage." These are ACA-compliant plans available through marketplaces like Connect for Health Colorado or directly from carriers.

Key features:

• Guaranteed coverage regardless of pre-existing conditions

• Standardized benefits and protections

• Premiums can be offset by subsidies depending on income

• Covers preventive care, prescriptions, specialists, and hospital visits

What Is Health Sharing?

Health sharing ministries are not insurance. Instead, members contribute a monthly amount that goes toward sharing other members' medical expenses. It's a community-based approach to managing healthcare costs.

Key features:

• Significantly lower monthly costs compared to traditional insurance

• Best suited for generally healthy individuals without pre-existing conditions

• Not bound by ACA regulations, so coverage varies

• Often pairs well with Direct Primary Care memberships

Key Differences at a Glance

FactorHealth InsuranceHealth SharingMonthly costHigherLowerPre-existing conditionsCoveredOften limited or excludedACA compliantYesNoGuaranteed coverageYesNoBest forThose with ongoing health needsHealthy individuals and families

How to Decide

Choosing between health insurance and health sharing comes down to your health status, budget, and risk tolerance.

Consider health insurance if:

• You have pre-existing conditions or ongoing medical needs

• You want guaranteed, regulated coverage

• You qualify for subsidies that lower your premium

Consider health sharing if:

• You're generally healthy with no major medical issues

• You want to reduce monthly costs significantly

• You're comfortable with a less traditional approach to coverage

Not Sure Which Is Right for You?

Every situation is different. We help individuals and families evaluate both options and find the right fit based on their health, budget, and goals.

Book a free discovery call and let's talk through your options.