The high costs of healthcare, from insurance premiums to out-of-pocket expenses, put financial strain on many households. Online healthcare financing options aim to help consumers pay their medical bills more affordably through payment plans, crowdfunding, provider discounts, and more.
Healthcare Sharing Ministries
Healthcare sharing ministries are nonprofit, faith-based organizations that facilitate medical cost sharing among members.
- Members pay monthly contributions into a cost-sharing account managed by the ministry.
- When members incur eligible medical expenses, other members’ contributions pay the supplier directly.
- Ministries require religious agreement and healthy lifestyles. Pre-existing conditions may not be covered.
- Healthcare sharing can cost significantly less than traditional insurance, with high deductibles.
- Popular ministries include Medi-Share, Samaritan Ministries International, and Liberty HealthShare.
For qualifying and healthy individuals, healthcare sharing provides an affordable alternative to insurance.
Crowdfunding Medical Bills
Crowdfunding platforms allow people to fundraise online for medical expenses from their social networks.
- Popular medical crowdfunding sites include GoFundMe, CoFund Health, and GiveForward.
- Users share their story and fund goals. Donors can contribute any amount securely.
- Fundraising success depends heavily on marketing the campaign through social media outreach.
- Contributions are typically treated as taxable gifts rather than charity. Medical records may be requested.
- Crowdfunding works best alongside insurance, for deductibles or extra costs.
While not predictable, crowdfunding taps into community support during times of need.
Membership-Based Provider Discounts
Some medical providers offer direct primary care arrangements with monthly fees providing steep discounts.
- Patients pay a monthly fee like $10-150 for an individual membership. Employers also offer group plans.
- Benefits include reduced rates on office visits, tests, prescriptions, and procedures from partnered providers.
- Various tiers of membership offer increasing levels of access, perks, and services.
- Examples include One Medical, Forward Health, and Devoted Health. Many are available online.
Membership plans make quality healthcare more accessible and affordable for a wider population.
Split Medical Bills into Installments
Breaking up large medical bills into smaller regular payments is easier on budgets.
- Many hospitals and healthcare providers partner with companies like CareCredit to offer 0% interest financing for 6-18 months.
- After the no-interest period, remaining balances commonly revert to high variable APRs, so individuals must pay off balances promptly.
- Alternatively, companies like CompassionateFinancing and Medworry offer longer-term fixed payment plans for medical bills without the same interest spikes.
- Payment plans help avoidCollection agency impacts and cover emergencies, but read terms carefully.
Payment plans cushion the financial blow of expensive procedures, screenings, and treatments.
Invest in a Health Savings Account
Health savings accounts act as dedicated savings for healthcare costs.
- To qualify, you must be enrolled in a high deductible health plan. Annual HSA contribution limits apply.
- HSA funds can be invested and grow tax-free. Withdrawals for eligible healthcare expenses are also tax-free.
- Unused HSA balances roll over year to year. Accounts are portable when you change jobs.
- HSAs are wise to pay for deductibles, copays, dental and vision care, and medications.
HSAs incentivize saving for future healthcare costs while providing tax advantages.
Utilize Tax-Advantaged Flexible Spending Accounts
Flexible spending accounts help pay predictable medical expenses with pre-tax dollars.
- Employees allocate pre-tax wages to an FSA through payroll deductions. This lowers taxable income.
- FSA funds can be used on copays, prescriptions, dental work, glasses, and more.
- Be conservative when allocating FSA contributions, as leftover balances are forfeited.
- FSAs have annual use-it-or-lose-it limits, around $2,850 in 2023.
When used strategically for planned medical spending, FSAs can generate significant savings.
Compare Prescription Prices Online
Compare prescription drug prices across pharmacies using sites like GoodRx and WellRx to find the lowest price nearby.
- Input your prescription details like drug name, dose, and quantity. Instantly see prices across local pharmacies.
- Apply any available discounts or coupons codes from the aggregator site to lower the price further.
- Check the aggregator app each time you fill a prescription, as prices can vary over time.
- Use a pharmacy rewards program account when searching for enhanced discounts.
Prescription price transparency saves money at the pharmacy counter.
Table: Overview of Online Healthcare Financing Options
| Option | How It Works | Pros | Cons |
|---|---|---|---|
| Healthcare Sharing | Members share medical costs | Lower premiums | Limited coverage, pre-existing condition exclusions |
| Medical Crowdfunding | Fundraise for bills through social media outreach | Taps community support | Unpredictable, high effort |
| Membership Discounts | Monthly fees for provider rate discounts | Reduces costs for frequent healthcare usage | Limited provider networks |
| Installment Payments | Break bills into fixed monthly payments | More manageable payments | Potentially high financing fees or interest |
| Health Savings Account | Tax-advantaged healthcare savings account | Funds grow tax-free | Require high-deductible health plan to qualify |
| Flexible Spending Account | Pre-tax funds allocated to healthcare spending account | Immediate tax savings | Forfeit unused funds at year-end |
| Prescription Price Comparison | Compare drug prices across pharmacies | Identify lowest nearby pricing | Must still pay full price, even if lower |
Frequently Asked Questions
Which online healthcare financing options can count towards my health insurance deductible?
Health savings accounts and flexible spending accounts can be used towards deductible and other medical expenses. Crowdfunding and other third-party services do not count towards deductibles.
Can I negotiate lower medical bills directly with hospitals or doctors?
You can always request to negotiate lower treatment charges or setup payment plans with billing departments. Provide financial records showing hardship if relevant. Several advocacy organizations also provide bill negotiation assistance.
What are the risks associated with medical crowdfunding sites?
Critics argue sites exploit users’ stories for profit and have limited vetting processes. Also, falling short of fundraising goals can further stress families. Still, with sound judgment, crowdfunding provides a grassroots financial solution.
Should I repay money raised from medical crowdfunding if my insurance unexpectedly covered the bills?
Ethically, any insurance payouts or excess funds raised should be refunded to donors or forwarded to another person in need. Be transparent in campaign updates about changes in your situation.
Can I change my FSA contributions if my healthcare expenses change?
FSAs usually lock in annual contribution amounts. However, some plans allow mid-year election changes in the event of major life events like marriage, childbirth, or employment change. Check your employer’s policies.
Are healthcare sharing ministries considered health insurance plans under the ACA?
No, healthcare sharing arrangements do not satisfy the ACA’s individual mandate given limited coverage. Members may still owe a tax penalty for lacking ACA-compliant insurance.
