What is the difference between insurance and a healthshare?

Health insurance is a regulated contract that guarantees payment of covered claims. A healthshare (healthcare sharing ministry) like Liberty HealthShare is a voluntary, faith-based community where members share medical expenses.

Healthcare sharing ministries like Liberty HealthShare operate on fundamentally different principles than traditional health insurance, with distinctions that affect both cost structure and member experience. Understanding these differences helps individuals make informed decisions about their healthcare financing options.

Legal and Structural Differences

The most important distinction is that Liberty HealthShare is not an insurance company and does not offer insurance products. Healthcare sharing ministries are faith-based organizations where members voluntarily share each other's medical expenses based on shared Christian values. Liberty HealthShare's sharing programs do not guarantee or promise that a member's medical bills will be paid or assigned to others for payment—whether anyone chooses to contribute toward a member's medical bills is entirely voluntary. Members remain personally liable for any unpaid bills, regardless of whether they receive payments for medical expenses or whether Liberty HealthShare continues to operate.

In contrast, insurance companies are legally bound by contractual obligations to pay covered claims according to policy terms. Insurance operates as a regulated financial product with guaranteed benefits, while healthcare sharing operates as a voluntary community support system.

Philosophy and Approach

The operational philosophy differs significantly between these two models. As Liberty HealthShare Chief Executive Officer Dorsey Morrow explains, traditional healthcare involves multiple profit-seeking entities: "You've got to deal with providers, you've got to deal with third party administrators, just so many people with their fingers in the pie and everybody is trying to make a profit." Healthcare sharing simplifies this structure by focusing purely on facilitation rather than profit generation.

Insurance companies typically aim to minimize their financial exposure, with limited personal interaction during claims processes. Liberty HealthShare, by contrast, emphasizes collaboration with members facing medical situations. "Our focus is on the member, what can we do to help you and what are you going through? Let's talk about it and let's see what the options are," Morrow notes. This member-centered approach reflects the ministry's commitment to supporting individuals rather than simply processing claims.

Member Engagement and Stewardship

Healthcare sharing requires more active member participation than traditional insurance. Morrow draws a comparison to how Americans maintain their vehicles: "We as Americans will buy a car and maintain that car because you're sinking a lot of money into it. You put the tires on, you get the oil change, you take it down to the car wash." He notes that while people carefully steward other investments, "healthcare is that one area where we tend to just sign up for it and then you're not engaged with it."

Healthcare sharing represents a mindset shift toward proactive engagement, encouraging members to understand their options, practice better stewardship of shared resources, and take responsibility for their health decisions. This active participation model distinguishes healthcare sharing from the more passive relationship most people have with insurance companies.