HCSM Myth #6: Ministries aren’t regulated

From the beginning of health care sharing ministries, objections to the system have been raised that do not accurately reflect reality. To help clear up these misunderstandings, we’re running a series of posts that dispel those myths.

Myth #6: Health care sharing ministries are not regulated.

It is true that health care sharing ministries are not subject to state insurance laws (since we aren’t insurance), but that doesn’t mean we aren’t subject to any laws.

HCSMs are regulated as charities in their home states under each state’s charity laws and each state’s attorney general, and as 501(c)3 charities by the Internal Revenue Service.

But our best regulators are our members. First, SMI members elect from within the membership the majority of the individuals serving on the Board which governs SMI. Also, Samaritan’s guidelines provide a complaint resolution process. Members dissatisfied with administrative decisions can appeal to a randomly chosen panel of 13 other members. Even that process has only been invoked once in Samaritan’s 17-year history.

Evidence points to member satisfaction. We have file drawers full of letters from members who like SMI and thank God for having provided this ministry. (What insurance company can claim that?)