Why IUA is better than a Deductible.
There are several reasons why you might prefer an IUA (Initial Unshareable Amount) over a traditional deductible:
1. Personal Responsibility: An IUA gives the reigns of responsibility back to the member for their healthcare related costs. This promotes personal accountability for health-related expenses and encourage members to make more informed decisions about their healthcare utilization.
2. Immediate Application: Unlike traditional deductibles that may accumulate over the annual agreement or across different medical events, an IUA is applied to each medical need-sharing request as it occurs. This means that members don't have to worry about reaching a certain threshold before their healthcare costs start being shared by the community.
3. Flexible Membership: HealthShare operates on a month-to-month membership basis with no contracts. An IUA aligns well with this structure since it doesn't accrue over time and is applied on a per-incident basis. This can provide members with greater flexibility and control over their healthcare expenses. It's also more cost efficient, a single IUA at $1000 dollars vs a $5000 deductible.
4. Variety of Options: HealthShare offers multiple IUA amounts allowing members to choose the level of financial responsibility that best fits their individual needs and budget. Those who are comfortable with higher out-of-pocket costs upfront can opt for a higher IUA, which typically translates to lower monthly sharing contributions.
5. Lower Monthly Contributions: Since higher IUA amounts result in lower monthly sharing contributions, members who are willing and able to take on more responsibility for their healthcare costs upfront can benefit from potentially lower monthly expenses.
In summary, an IUA offers a balance between personal responsibility and community sharing, providing members with flexibility, immediate cost-sharing benefits, and options to tailor their healthcare expenses to their individual preferences and financial circumstances.