Retirement planning involves careful stewardship . You’ve likely spent years thinking about your 401(k), Social Security benefits, and how to make your nest egg last. Health care is often one of the most significant expenses in retirement. Most seniors age 65 and older are enrolled in Medicare Parts A and B, but still face high out-of-pocket costs such as deductibles, coinsurance, and other expenses.
Some Christians enrolled in Medicare consider participation in a health care cost sharing program like Medi-Share® 65+ to help with additional eligible expenses. Medi-Share 65+ is not insurance and does not replace Medicare. Instead, it is a faith-based program where a community of like-minded seniors helps share in one another’s medical bills according to established guidelines. Many seniors appreciate that the program aligns with their faith and their budget.
If you are exploring this approach, it is wise to understand how it fits into your overall financial plan.
Here are several financial planning tips to consider.
1. Understand the Key Financial Components
While health insurance might use terms like premiums, deductibles, co-pays, and out-of-pocket maximums. Health care sharing ministries use different terminology and operate under member-adopted guidelines. Understanding these terms is essential for proper budgeting.
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Monthly Share: Your Monthly Share is the amount you contribute each month. These contributions are used to meet other members’ eligible medical needs in accordance with the guidelines. You can take comfort in the fact that your money isn’t supporting a corporation but instead is directly helping fellow seniors. When you have a need, other members’ contributions are used for your bills.
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Annual Household Portion (AHP): Your AHP is the amount you are responsible for paying toward eligible medical bills each year before the community begins sharing in those costs. It functions similarly to a deductible, though health care sharing is not insurance.
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Non-Eligible Expenses: Medi-Share 65+ has member voted guidelines for what kinds of medical bills are eligible for sharing. Make sure you know what's eligible and what isn't, so you can plan for those out-of-pocket costs. You can review the Medi-Share 65+ Guidelines here.
When you add up your monthly share and budget for your AHP and routine care, you get a clearer sense of your total potential health care spending for the year.
2. Align Your Retirement Budget Thoughtfully
Once you understand the structure, evaluate how participation fits into your overall retirement income strategy.
Review your income sources, such as Social Security, pensions, or investment withdrawals, and compare them with your projected expenses. Consider how your potential health care expenses fit within that framework.
Some seniors choose to set aside funds specifically for their AHP or anticipated out-of-pocket costs. Thoughtful planning can help you steward your resources well and reduce financial stress during retirement.
3. Build a "Health Care Emergency" Fund
Even with a great program like Medi-Share 65+, unexpected medical situations can arise, and maintaining a personal financial cushion is prudent.
Consider establishing a dedicated savings account for medical expenses. This reserve can help pay for:
• Your Annual Household Portion
• Medical expenses that are not eligible for sharing
• Unexpected health-related costs
Having a reserve in place can provide additional peace of mind as you navigate retirement.
4. Factor in the Community Aspect
One of the most significant differences between insurance and health care sharing is the community. At Medi-Share, members not only share financially but also pray for one another. This support system is an invaluable asset that doesn’t show up on a budget spreadsheet.
For many seniors, this community component is an important part of their decision-making process. The emotional and spiritual support can reduce the stress and anxiety that often accompany health challenges, and that's a perk you can't put a price on.
5. Review Your Participation Annually
Your financial and health needs may change over time. Just as you periodically review your investments or estate plan, consider reviewing your health care sharing participation each year.
Ask yourself:
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Does this participation alongside Medicare still align with my budget?
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Is my Monthly Share manageable within my fixed income?
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Have my health needs changed in ways that require additional planning?
An annual review helps ensure your approach continues to align with your financial goals and personal circumstances.
A Path Forward in Faith and Finance
Choosing how to manage your health care costs in retirement is a big decision. For many Christians, health care sharing offers a powerful combination of financial stewardship and community fellowship. By taking the time to understand the costs, adjust your budget, and plan ahead, you can move forward with confidence knowing you are making a wise choice for both your health and your finances.
