Are Health Share Plans the Future of Employee Benefits?

Healthcare costs are at an all-time high, pushing businesses to seek creative solutions that address both employee needs and their bottom line. In 2023, the National Health Expenditure (NHE) grew by 7.5%, highlighting the increasing financial strain traditional insurance places on everyone.

Health share plans, often referred to as "HealthShare memberships," are emerging as a cost-effective insurance alternative. These memberships offer flexible care options and financial protection for medical expenses, making them a viable choice for businesses aiming to escape the high costs and administrative burdens of traditional insurance. 

For businesses looking to move beyond complex and expensive benefit models, health share plans represent a fresh approach to healthcare—one that prioritizes affordability, simplicity, and flexibility. 

What are health share plans?

Health share plans are a modern alternative to traditional health insurance that takes a community-focused approach to managing medical expenses. Instead of being insured by a company, members join a group that collectively contributes to a shared fund.

These funds are then used to assist with eligible medical bills. Members pay a monthly contribution, and when they have a medical need, they pay an initial portion out-of-pocket (similar to a deductible). The remaining qualifying expenses are shared by the community, providing financial support and peace of mind. 

Unlike insurance, HealthShare memberships are not bound by legal guarantees or contracts. Instead, they rely on established guidelines and shared responsibility to manage costs collaboratively. This approach allows for greater flexibility, affordability, and clarity for members. 

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The challenges of traditional employee benefits

The rising cost of healthcare makes traditional benefits a growing challenge for employers and employees alike. In 2024, the average annual premiums for employer-sponsored insurance reached $8,951 for single coverage and $25,572 for family coverage. These escalating costs highlight the need for more affordable healthcare solutions. For many businesses, the financial burden of traditional benefits is prompting employers to rethink how they can support their team’s needs without overextending their budgets. 

But the challenges go beyond the financial strain. Traditional employee benefits are often complicated and difficult to navigate, leaving both employers and employees feeling overwhelmed. Some of the most common frustrations include: 

• High premiums and deductibles:  Employees often feel like they pay a lot but get little in return, especially if they don’t meet high deductibles.

• Limited provider networks: Employees want the freedom to choose their own providers, but traditional plans often limit their options. 

• Administrative complexity: For HR teams, managing enrollment, claims, and compliance can be time consuming and overwhelming. 

• Lack of flexibility for small businesses: Smaller employers often find it challenging to offer affordable plans that meet the unique needs of their teams. 

These challenges make it difficult for employers to offer competitive benefits that truly support their employees, and they leave employees unsure how to make the most of their benefits. It’s no wonder many employers are searching for solutions that better align with the needs of today's workforce. 

• Affordability: Affordable monthly membership fee, allowing employees to save on premiums and take control of their healthcare dollars. 

• Flexibility:  Members can choose any provider without being tied to a network. 

• Transparency:  Clear guidelines outline what is eligible for sharing, reducing confusion. 

• Simplified Processes: Instead of complex claims, members pay an initial unshareable amount (IUA) and submit a sharing request for eligible expenses. 

• Community-Based Support: Members feel connected through a shared commitment to managing healthcare costs collaboratively. 

• Scalable Solutions:  Adaptable as businesses grow, making them a sustainable option for growing businesses. 

By offering HealthShare memberships, employers—including small and medium-sized businesses—can provide their employees with high-quality, flexible healthcare while staying within budget. It’s a sound solution for businesses looking to attract and retain top talent without the heavy financial burden of traditional insurance.

Why health share plans could be the future

The world of employee benefits is shifting, driven by rising healthcare costs, evolving workforce expectations, and the need for more flexible solutions. HealthShare memberships are emerging as an innovative way to support employees while addressing employers' financial concerns. 

Rising Healthcare Costs

In 2024, employers contributed an average of $19,276 annually per employee toward family health coverage—a cost that adds up quickly and puts significant pressure on business budgets.

A HealthShare membership offers a solution that provides employees with financial flexibility while ensuring access to essential care. With lower monthly costs and a community-focused approach, they make healthcare more sustainable for both employers and employees.

Demand for Flexibility 

While some CEOs are pushing for a return to the office, many executives acknowledge that remote work is here to stay, with fully remote employees projected to grow from 10.2% to 11.2% of the American workforce by 2028. This continued shift highlights the need for benefits that align with employees’ increasingly flexible lifestyles. HealthShare membership addresses this demand by eliminating network restrictions and empowering employees to choose their preferred providers—no matter where they live or work. 

Meeting Employee Expectations

Modern employees value benefits that are simple, flexible, and cost-effective. Studies show that 56% of employees consider health coverage satisfaction a key factor in deciding whether to stay with a job. HealthShare memberships meet these needs with affordability, transparency, and a collaborative, community-driven approach.

By solving the challenges of rising costs and changing workforce needs, health share plans are paving the way for a new era in employee benefits—flexible, affordable, and built for the modern employee.