The Richmond Register

Homepage

February 12, 2013

First hurdle for Medi-Share cleared

By Ronnie Ellis CNHI News Service

FRANKFORT — A bill to exempt a Christian medical needs-sharing program from some Department of Insurance regulations cleared the Senate Banking and Insurance Committee on Tuesday.

The bill, sponsored by Sen. Tom Buford, R-Nicholasville, the committee chair, would pave the way for Medi-Share, an insurance-like shared risk program for Christians, to return to Kentucky.

Medi-Share, a cost-sharing program of Christian Care Ministries based in Melbourne, Fla., left Kentucky in January after the Department of Insurance determined the service is not a direct sharing of risk between members.

But that left some members high and dry, according to those who testified before Buford’s committee Tuesday.

David Schwartz, a Trigg County minister whose wife has suffered two bouts of melanoma, said when Medi-Share left he had a difficult time securing insurance despite a letter from DOI saying his wife’s pre-existing condition should not bar her from buying insurance.

Schwartz said just one bill of the amount his wife incurred during previous treatments of her cancer could wipe out his entire annual salary as a minister.

Robert Baldwin, National Policy Director for Christian Care Ministries, said 21 other states have such exemptions in state insurance regulations and the national Affordable Care Act specifically exempts members of such sharing cooperatives from the tax levied on those without insurance.

But the program technically isn’t insurance. Members are assigned a monthly “share” based on their income levels and those amounts are placed into personal accounts, which they control. If another member’s health care costs exceed his ability of pay, then other members share those expenses.

Duane Walker, a Lexington minister, told the committee his wife incurred more than $250,000 of medical bills for treatment of breast cancer.

Walker said he was completely pleased with the way the system worked and had never had a complaint. But now, he said, his monthly cost for a premium with a private insurer will double.

Buford said the insurance department had only followed existing Kentucky law and that was why his bill is necessary.

He told the story of constituents who had depended on Medi-Share but now faced pregnancies without coverage because the organization was no longer operating in Kentucky.

Buford said he hopes to place an emergency clause on the bill, which would make it effective as soon as the governor signs the bill. It would first have to pass the full Senate, which seems likely given the number of Republican co-sponsors and then the Democratic-controlled House.

Sen. Morgan McGarvey, D-Louisville, was the only member of the committee to question those testifying in support of the bill — and he ultimately voted to pass the bill out committee.

In response to McGarvey’s questions, Baldwin said the organization had never been unable to pay for a member’s medical needs in its 19 years of operation. Over that period, he said Medi-Share has paid out more than $500 million in “shared needs.”

He said the monthly fee averages about $400 per member, and members are explicitly told when they sign up that Medi-Share is not insurance and payments are not guaranteed.

Buford said no member of Medi-Share had ever lodged a complaint with the insurance department during the time it operated in Kentucky.



Ronnie Ellis writes for CNHI News Service and is based in Frankfort. Reach him at rellis@cnhi.com. Follow CNHI News Service stories on Twitter at www.twitter.com/cnhifrankfort.

 

Text Only
Local News
  • Exit 95 rebuild delayed until 2017

    Originally scheduled for 2014, the reconstruction of Exit 95 on Interstate 75 won’t take place until 2017, Madison Judge/Executive Kent Clark told a joint meeting of the Richmond and Berea chambers of commerce Friday.
    The state Transportation Cabinet is delaying the project, Clark said, until a decision is made on the proposed highway that would run from Exit 95 to Nicholasville.

    May 18, 2013

  • 5-18 bornlearningGrad1.jpg Toyota bornlearning Academy graduates parents

    Seven graduates received their certificates Thursday night, but not with the customary rendition of “Pomp and Circumstance.”
    It was a celebration of the parents’ six-month journey with the Toyota bornlearning Academy at Berea Community School.
    The academy works with parents and caregivers of children from prenatal to 5 years old on ways to turn everyday moments into learning opportunities.

    May 18, 2013 5 Photos

  • 5-18 Caudil 2.jpg Caudill Middle School student showcase

    Members of the Caudil Middle School Jazz Band entertain the crowd during the school's end of year student showcase Thursday.

    May 18, 2013 2 Photos

  • 5-18 Scott Hobbs.jpeg Man arrested Friday after early morning break-in

    Richmond police made an arrest Friday in connection with an early morning break-in at Jack’s Cleaners on West Water Street.
    Scott Hobbs, 42, of McKee, was charged with first-degree burglary, according to Richmond Police Chief Larry Brock
    At 3:25 a.m., a witness reported seeing a man enter and exit the cleaners through a broken window and drive away, Brock stated in a news release.

    May 18, 2013 1 Photo

  • 5-18 Justin Howell.jpg Grand jury indicts inmates in jail assault

    Two inmates at the Madison County Detention Center were indicted Wednesday on charges related to the beating of another prisoner.
    A Madison grand jury indicted 28-year-old Justin Morgan Howell and 26-year-old Lucas Wayne Shanks on charges of second-degree assault, second-degree escape and second-degree persistent felony offenders.

    May 18, 2013 2 Photos

Sports
Lifestyles & Community
Viewpoints
Community Calendar
Loading…
Events by eviesays.com
AP Video
Probe Begins After Conn. Commuter Trains Crash NTSB Begins Investigation Into Conn. Train Crash Lotto Fever Sweeps the Country Conn. Commuter Trains Collide; 60 Go to Hospital Coffee Run Leads to Hatchet Hitchhiker Arrest Fmr. IRS Head Insists No Politics in Targeting CDC: Fecal Bacteria Common in Swimming Pools $1 Million in Jewels Stolen at Cannes Film Fest NM Mom Chases Down Child Abductor Raw: Crash Sends Car Into Fla. Pool Raw: Obama Sits Down With Elementary Kids Raw: Bear Falls From Tampa Tree Ousted IRS Chief: Errors Not Caused by Politics Terror Suspect Due in Court in Idaho Friday Raw: Driver Ejected From Truck, Over Bridge Could Tobacco Be the Next Biofuel? Wash. State Releases Draft Rules for Legal Pot Dying Man's Blinks Lead to Murder Conviction Officials: Texas Tornado Likely Had 200 Mph Wind Brothers Arrested in NOLA Parade Shooting
Hyperlocal Search
Premier Guide
Find a business

Walking Fingers
Maps, Menus, Store hours, Coupons, and more...
Premier Guide
Poll

Was Eastern Kentucky University justified in agreeing to a $400,000 salary plus benefits, including a housing allowance, for incoming president Michael Benson?

Yes. Benson is a proven fundraiser and institutional leader. Bringing him to EKU will pay enormous dividends. Also, his salary will still be less than that of Western Kentucky University’s president and is comparable to what other successful schools are paying their presidents.
No. With EKU giving only modest, if any, pay raises to faculty/staff, offering buyouts, planning layoffs and elimination of programs, paying the president that much can’t be justified, no matter how good he is. How can he ask others to sacrifice when he will be making $400,000.
I don't care.
     View Results