Ministry Medical Billing Systems - Bill Sharing or Insurance?

The New York Times recently published an article about ministry medical billing services - church organizations which help members with their health care costs. Members pay a monthly "premium", which is used to pay health care claims submitted by members. The ministry calls this voluntary bill sharing. State officials call it unregulated health insurance.

The government is concerned because there is no guarantee that the ministry will have enough money to pay for its claims at any given time. Participants may believe that they have actual insurance coverage, when in fact, the program is simply a religious mission to assist members with the cost of their care. However, current state insurance laws in some states allow non-profit religious organizations to remain exempt from state regulation.

This may change as state officials begin challenging the exemption laws. The first battle is underway in Kentucky. Depending on the judge's ruling, the ministry medical billing service may have to fold - or reinvent itself as a bona fide health insurance plan.