Only about 300 Kentucky families participate in a Christians-only health care plan that counts nearly 40,000 participants in 49 states, but that’s enough for Attorney General Jack Conway to ask the Kentucky Supreme Court to bar Medi-Share from operating in the state.
To do so, the state’s highest court would have to overturn two lower court decisions — one by Franklin County Circuit Court that was upheld by the Kentucky Court of Appeals -— that ruled Medi-Share is a medical cost-sharing plan and not insurance. As a result, it cannot be regulated by the Kentucky Department of Insurance.
However, during recent oral arguments before the Kentucky Supreme Court, at least one of the justices — Wil Shroder — seemed to agree with Conway.
“If it walks like a duck and quacks like a duck, it looks like a duck,” Shroder said.
But Medi-Share — which has been tested in state courts throughout the country — has never claimed to be an insurance company. Participants in the program contribute to a fund that is used to help pay their medical expenses, and nationwide the program generates about $42 million a year. However, unlike an insurance policy, Medi-Share does not guarantee that it will be able to pay all the medical expenses of participants.
“It’s founded on the fundamental biblical belief of sharing one another’s burdens,” said Lexington attorney Brent Caldwell, who is representing the Medi-Share program.
The program excludes non-Christians because, organizers say, their lifestyles can result in unnecessary medical care, but even some Christians are excluded. Participants can’t smoke, use illegal drugs or abuse alcohol. They’re also not allowed to enroll if they have pre-existing conditions like heart disease, diabetes or cancer. In essence, Medi-Share is for Christians who have the healthiest lifestyles and, therefore, should be among the least likely to become ill.
On its Website, Medi-Share, based in Melbourne, Fla., clearly says it doesn’t guarantee the payment of medical bills and that it should never be considered a substitute for an insurance policy.
The Kentucky Department of Insurance pushed to require the cost-sharing program to operate under the same rules as insurance companies, fearing that people are paying monthly premiums for what they believe to be insurance.
Choosing to participate in Medi-Share instead of purchasing health insurance is a risk, but participants know that and are willing to take that risk.
The mission of Kentucky Department of Insurance is to protect consumers by making sure that insurance companies operating in the state are financially sound and can deliver on the promises it has made to policyholders, be they purchasers of home, vehicle, auto, health or other types of insurance.
However, the Kentucky families who participate in Medi-Share do not want the protection of the Department of Insurance. While we are not willing to recommend to anyone that they drop their health insurance and enroll in Medi-Share, that choice should be theirs, not the state’s.
Medi-Share is not trying to bamboozle participants. It tells participants what they are getting — and what they are not guaranteed — when they enroll. Caveat emptor. Let the buyer beware
