If you’re looking to pay reasonable price for health insurance, but still want to avoid penalties for not complying with Obamacare, then you should consider joining a medical sharing community. While the concept is nothing new and this has actually been an effective way to ensure coverage when needed, since the ACA was introduced, there has been a surge in interest in this type of solution.
What Is Medical Sharing
Medical sharing, or health sharing, is basically a group of people that join to cover each others’ medical costs, thereby removing the need to purchase costly insurance. Since these are faith-based, there is usually a set of guidelines regarding health and lifestyle that one must meet in order to join. These range from not smoking to other lifestyle choices, but the average person can typically participate.
One of the main benefits to being part of a medical sharing community is the amount of savings due to not having to pay ridiculously high premiums every month. It is common for the average family to pay about $200 a month for the minimum level of coverage. Also, the exception from the ACA mandate is a savings as well, since the penalty is waived.
In terms of taxation disadvantage, while there are no actual Federal or State laws specifically addressing this faith based medical sharing communities, employers would be unable to deduct these medical sharing payments in their taxes. Self-employed and other individuals who are part of a medical sharing community would not be able to deduct these costs on their income tax return as well.
Few of the major health care sharing ministries are:
If you are interested in learning more about medical sharing and tax issues associated with joining a medical sharing ministry, give us a call today at Levy Tax Group, Inc. at 404.692.1426. Our taxation and accounting experts will help you make the right decision for your specific circumstances.
Disclaimer: This article is not a consultation or attempt to provide actual advice. Please consult a professional to discover the various advantages and disadvantages of medical sharing, since this article approaches medical sharing from the taxation perspectives.
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