The Key To Success Is Sincerity

 

I was captured by the sincerity of his voice.  Gentle.  Reassuring.  But most of all, sincere.  The voice was coming through my radio, but it seemed like he was sitting next to me.  His message was clear.  If I was a good person, a person of faith, I could join his club.  And as long as I didn’t need a car now, he and the other members of his club would help pay for a car if/when I ever needed one.  Yes, other good people would care so much that they would actually pray for me and help me pay for my car.  This alternative way to pay the high cost of an auto purchase was the smart way for people like us.  Even their toll-free number, 1.800.xxx.xxxx, spoke of a higher purpose.  The friendly operator told me that the State of Ohio is promoting this program.  My monthly payments to the club are tax deductible!  I was impressed and immediately signed up.  I am telling you all of this because I am in shock.  It has been two years and now I really need a car.  I went into the dealership, picked out a car, and showed the car salesman my membership card.  He laughed and asked me how I was going to pay for the car.  He wanted money, NOW, or for me to apply for a car loan, NOW.  I have to buy the car.  People may send me nice notes.  They may pray for me.  Some might even send money.  It turns out that none of this is guaranteed.  None of this is regulated by the State of Ohio.  My bills are my own and I don’t know if I can afford a car now that I really need one. 

There really aren’t commercials on the radio for a join now – get a car when you need it club.  There are politicians pushing for alternative, cheaper ways to cover your future health care costs.  Some of these plans are very, very high-deductible plans that only focus on major hospital care.  Some are association plans that purposely neglect to cover conditions as common as pregnancy.  And then there are the health care sharing ministries that offer something that could help pay for your health care, but are NOT INSURANCE.  I put those words, NOT INSURANCE in all caps, because you might have a hard time figuring that out if you hear their commercials or visit their websites.  The alternative plans, whether they are actually insurance or not such as most of the association and Share Plans, have several things in common:

·         The plans are underwritten.  You may or may not be accepted.

·         These plans do not cover preexisting conditions.

·         Insurance plans are regulated by your state’s Department of Insurance

·         Most association plans (like the Farm Bureau) and Share Plans are exempt from all state insurance regulation since they are NOT INSURANCE.

·         In the case of the Share Plans, paying your claim is optional.  You are responsible for the bills you incur.  People may choose to ignore you in your time of need, send you their thoughts and prayers, or send you some money.

I visited the websites from a couple of the larger Share Plans:

1.      Liberty HealthShare

2.      Medi-Share

These look like insurance websites.  There are plenty of stock photos of happy, smiling individuals, couples, and families.  There are bold numbers and tons of promises.  You will be hard pressed to find the line that says that these aren’t insurance plans.  If you visit these websites, you might believe that you could access care anywhere.  But you can be denied non-emergency care if you take their plan into a doctor’s office or your local hospital.  The medical provider can, and probably will, require you to pay for all services in advance or to apply for financial assistance. 

Do these plans work?  The honest answer is sometimes.  There are people who value the notes and prayers almost as much as the money according to one member of the Ohio House of Representatives.  Others are not quite as happy.  As an agent, I have had to try to help cancer patients find real coverage once they’ve learned that having a Share Plan didn’t mean that their bills were going to be paid.  The reviews are less than positive.  Here is one link to reviews.  Here is another. In all fairness, the reviews for Liberty were more positive.  The real problem with non-insurance is that there is no real way to know if your claims will be paid or if you will be reimbursed. 

There are legislators on both the state and federal level that decry the high cost of health insurance.  Normally their complaint is centered on Obamacare, the Patient Protection and Affordable Care Act.  Some of their issues are legitimate, some purely political.  This blog has detailed the 15 year effort to sabotage Obamacare, noting that there has never been a viable alternative proposed nor an answer as to how we could properly cover the millions of Americans with preexisting conditions.  The Kaiser Family Foundation has noted the rise in alternative health schemes and risks associated with these plans.  Those pushing alternative plans for the purpose of the short term premium savings are simply removing healthy people from the insurance pool, which in turn raises the prices for everyone left.  You can not fund a health care system with only the sick and the responsible participating. 

Some of you may be old enough to remember, “We have to destroy the village to save it”.   Our legislators in Columbus are trying to apply that solution to our health care system with Ohio House Bill 21, Enact the Health Care Sharing Ministries Freedom to Share Act.  This legislation attempts to make Health Care Sharing Ministries a legitimate funding alternative to health insurance for Ohioans.

1.      It begins by making sure that there is no regulatory oversight.  They are exempt from all insurance regulation

2.      The monthly payments are deductible.  The lobbyist for the Samaritan Ministries stated in written testimony, “Lastly, HB 21 will allow HCSM members to deduct the shares they send to other members on their Ohio state tax returns. Nearly 50% of our members are below 200% of the poverty line and choose to forgo Medicaid; many also live in rural areas where health care options are limited. These tax savings will make a meaningful difference for thousands of Ohioans.”  Medicaid eligible people seldom need a tax deduction.  Is the purpose of the tax deduction to entice some wealthy individuals choose to contribute to a stranger’s bill?  Of equal value, the tax deduction grants legitimacy and will be a selling point to the gullible.  This does create a new class of tax deductions since it is not insurance and it isn’t a charity.

3.      Students at Ohio universities would be allowed (encouraged) to opt out of their mandatory health insurance requirement if they purchase a Health Share Plan.  Who will pay their unpaid bills?  We might as well have them buy two tin cans and some string and tell them to pretend they have a phone. 

You can not depend on a club to buy you a car.  And health insurance is still the way most Americans access and pay for health care. 

George Burns is credited with saying, “The key to success is sincerity, if you can fake that you’ve got it made”.   We need more than sincerity, real or fake, to cover our medical expenses.  We need insurance. 

Dave 

Health Insurance Issues With Dave 

Picture – A Mouse And A Free Car – David L Cunix