Health insurance costs keeping you from retiring early?

You’ve saved diligently, paid off debt, and finally have enough to retire years before age 65. Then you price health insurance and realize it could cost $1,000-$2,000 per month for a couple. Suddenly, early retirement doesn’t seem so affordable.

Did you know?

Nearly one in 10 adults — or an estimated 24 million Americans — say they have postponed their retirement due to healthcare costs. –Source: West Health-Gallup Center on Healthcare in America

For many Americans, health coverage, not savings, is the biggest obstacle to retiring before Medicare begins. And with the costs of health insurance skyrocketing recently, the obstacle is only getting bigger. Fortunately, there is an alternative that may make early retirement financially possible.

Health Shares - An Alternative for Early Retirees

Health shares have been around since the early 80s. Initially they were associated with religious organizations. Since then the number of health share options has grown (100+) along with the services they offer. And there are now a number of health shares which do not require a religious affiliation. Industry reports put the number of Americans subscribed to health share plans at between 1.5 to 2 million.

Health share programs are not health insurance. Instead, members contribute monthly amounts that are used to help pay eligible medical expenses for other members according to published sharing guidelines. When a member has an eligible medical expense, they open a sharing request and the health share administrator reimburses the member from the collected funds. Similar to a deductible, members are on the hook for paying an Initial Unshareable Amount (IUA) before the remaining costs are eligible to be shared.

Option	Typical Monthly Cost	Pre-existing Conditions	MEC Coverage	HSA Eligible
Cobra	High	Yes	Yes	Depends on Plan
ACA Marketplace	High	Yes	Yes	Depends on Plan
Health Share	Low	Limited or Phased-In	Depends on Plan	Depends on Plan

Beyond medical cost protection, some health share plans come with additional benefits:

• Virtual care (telehealth) for day-to-day illnesses and mental health at no additional cost
• Ability to see any medical provider, no network restrictions
• No referrals or pre-authorizations for eligible expenses
• Minimum Essential Coverage (MEC) as defined by ACA
• HSA account eligibility
• No annual or lifetime maximum

Who should consider signing up for a health share?

Health share plans can be an excellent option for people who:

• Are retiring before age 65
• Are generally healthy
• Have few ongoing medical conditions
• Want protection from major medical expenses
• Are looking for lower monthly costs than traditional insurance

They may not be the best choice if you:

• Have pre-existing conditions requiring expensive, ongoing care

Most health share plans exclude coverage for any treatment that can be linked to a pre-existing condition during your first year on the plan and then phase in coverage over the next 2-4 years by setting max yearly reimbursement amounts. Pre-existing conditions are generally defined as any health issue you were diagnosed with during the ‘lookback period’ (generally 2 - 3 years prior to sign up) or for which you had documented symptoms. For example, if you went to the ER with chest pains during the lookback period and you later had a heart attack, it probably won’t be covered. Some common conditions such as high blood pressure are not considered pre-existing as long as they are ‘managed’ (i.e. you are taking your medications). It’s important to review the published guidelines for any health share plan you are considering to make sure you understand what is and is not covered.

Can a Health Share Make Early Retirement Possible?

While costs vary by age, location, and plan selection, many early retirees find that health share memberships cost substantially less than comparable ACA Marketplace plans. Roughly 30-60% less. That translates to dollars that stay invested and help extend your retirement savings.

If traditional health insurance premiums are the biggest obstacle standing between you and retirement, exploring a health share may be worth your time.

Next Steps

If you believe a health share might help you retire before Medicare availability, the next step is finding a program with transparent guidelines, a strong reputation, and options that match your budget.

After reviewing the leading health share organizations, Smart Share recommends plans from MPB Health. MPB plans have:

• A range of options starting with basic medical cost protection up through full MEC and HSA qualified plans
• Transparent pricing and plan guidelines so there are no surprises as to what is and is not covered
• A track record of no hassle payments for eligible sharing requests
• Excellent member reviews

Smart Share can help you compare plans, understand how they work, and determine whether they’re a good fit for your situation. Reach out if you have questions after reviewing the plan information.

Disclaimer: Smart Share is an MPB Health adviser and receives commissions if you sign up via the Smart Share website.