Crowdfunding Strategies For Patients With Limited Health Insurance Coverage
In India, medical inflation has skyrocketed to 14%, double the rate of general retail inflation (Economic Times). The rising costs of healthcare services, hospital stays, medications, and treatments create a heavy burden for those in dire need. As healthcare expenses continue to climb, individuals are left with limited options to afford essential treatments.
Medical facilities can be both limited and expensive and many Indians allocate a significant portion of their income to healthcare. For most in the country’s lower and middle class population, the concept of health insurance remains largely unfamiliar, with 75% of healthcare expenses funded directly from household income (Economic Times). Even with health insurance available, numerous claims are denied, forcing people to turn to private healthcare and pay out-of-pocket.
Medical loans are another option, but they often come with high-interest rates and can take time to be approved, which is far from ideal in emergencies. This is where medical crowdfunding is revolutionising the healthcare landscape by providing access to quality medical care for all. It addresses systemic inequities and offers a practical solution to the financial challenges faced by those struggling to pay medical bills.
Since the launch of the first crowdfunding platforms in 2009, millions of campaigns have been initiated, establishing this method as a widely recognized way to finance medical care. These platforms have proven to be essential, particularly during crises like the COVID-19 pandemic. In the early months of the pandemic, India faced a 7.5% unemployment rate, making medical crowdfunding an essential resource for many. Even before the pandemic, nearly 30% of India’s population—around 420 million people—lacked health insurance (Economic Times). Crowdfunding platforms became key players in mobilising funds for medical aid and supporting charitable initiatives.
When navigating medical expenses, both crowdfunding and health insurance serve important roles. Health insurance offers a structured and predictable way to manage medical costs, while crowdfunding provides a flexible and immediate alternative to bridge the gaps that traditional insurance may leave behind. Let’s take a closer look at how each of these methods operates and why crowdfunding can be an invaluable resource during times of medical need.
Medical facilities can be both limited and expensive and many Indians allocate a significant portion of their income to healthcare. For most in the country’s lower and middle class population, the concept of health insurance remains largely unfamiliar, with 75% of healthcare expenses funded directly from household income (Economic Times). Even with health insurance available, numerous claims are denied, forcing people to turn to private healthcare and pay out-of-pocket.
Medical loans are another option, but they often come with high-interest rates and can take time to be approved, which is far from ideal in emergencies. This is where medical crowdfunding is revolutionising the healthcare landscape by providing access to quality medical care for all. It addresses systemic inequities and offers a practical solution to the financial challenges faced by those struggling to pay medical bills.
Since the launch of the first crowdfunding platforms in 2009, millions of campaigns have been initiated, establishing this method as a widely recognized way to finance medical care. These platforms have proven to be essential, particularly during crises like the COVID-19 pandemic. In the early months of the pandemic, India faced a 7.5% unemployment rate, making medical crowdfunding an essential resource for many. Even before the pandemic, nearly 30% of India’s population—around 420 million people—lacked health insurance (Economic Times). Crowdfunding platforms became key players in mobilising funds for medical aid and supporting charitable initiatives.
When navigating medical expenses, both crowdfunding and health insurance serve important roles. Health insurance offers a structured and predictable way to manage medical costs, while crowdfunding provides a flexible and immediate alternative to bridge the gaps that traditional insurance may leave behind. Let’s take a closer look at how each of these methods operates and why crowdfunding can be an invaluable resource during times of medical need.
Table of content:
- The difference between insurance and crowdfunding for medical expenses
- Should crowdfunding be used as a substitute or complementary to insurance?
- How is crowdfunding an attractive alternative in contrast to health insurance?
- How can patients with limited health insurance coverage use crowdfunding?
- How Milaap can help
The difference between insurance and crowdfunding for medical expenses
Insurance
What is it?
Health insurance represents the traditional method of covering medical costs. Policyholders pay premiums to receive financial assistance for medical expenses based on specific terms and conditions. While it provides a reliable way to manage healthcare costs, health insurance has its limitations.What are its limitations?
Health insurance plans often come with various exclusions and stipulations. For example, they might not cover certain treatments or cater to specific demographics, such as the elderly. Additionally, obtaining health insurance can involve lengthy legal procedures and can be quite costly. As noted by Forbes, only 37% of India’s population currently has medical insurance, highlighting the accessibility challenges many face.Associated risks
Insurance policies are designed to protect against anticipated risks. However, they may fall short during significant medical emergencies, leaving patients with substantial out-of-pocket expenses. The high costs associated with surgeries, hospital stays, and medications can quickly exhaust insurance coverage, pushing individuals into financial distress.Crowdfunding
What is it?
Crowdfunding is a modern fundraising method that utilises the internet to gather contributions from a large number of people, often in small amounts, towards a specific cause. This approach has gained popularity for medical fundraising due to its simplicity and efficiency.How does it work?
Setting up crowdfunding campaigns is remarkably easy and quick, enabling individuals to start collecting donations almost instantly. Milaap offers a zero-fee platform, making it accessible for everyone, regardless of age, gender, or location. Campaigns can gain significant traction by sharing on social media, attracting media attention and widespread community support.What are its benefits?
Crowdfunding has proven particularly effective for medical treatments that health insurance typically does not cover, such as experimental therapies or treatments lacking extensive scientific validation. During the COVID-19 pandemic, crowdfunding became a crucial resource for many, and its significance continues to grow.Should crowdfunding be used as a substitute or complementary to insurance?
Though universal health coverage is seen as a basic right, in today’s world, getting the treatment you need can be difficult due to limited funding. While public systems use taxes and insurance contributions, private ones rely on out-of-pocket payments and voluntary contributions. In this context, crowdfunding has become a crucial tool for covering gaps left by traditional insurance. But the question that arises here is, should crowdfunding replace insurance or simply serve as an extra resource? Let’s explore this further.
Crowdfunding as a replacement for insurance
For individuals lacking insurance coverage, crowdfunding can serve as a viable alternative to health insurance. Many who struggle to secure traditional insurance turn to crowdfunding platforms to help cover their medical bills. In many instances, charity care and medical safety nets often fall short in providing access to high-quality healthcare facilities and treatments, particularly for those battling serious illnesses. In such instances, crowdfunding becomes an essential resource, enabling patients to pursue advanced care that might otherwise be out of reach.Crowdfunding as an addition to insurance
Crowdfunding can also serve as a complement to existing health insurance. Even those who are insured may find themselves facing hefty out-of-pocket costs and shared expenses. After obtaining coverage, many individuals become more aware of their healthcare needs and may seek additional financial support through crowdfunding for indirect costs associated with major surgeries or treatments that insurance doesn’t fully cover. For example, a person requiring a knee replacement might turn to crowdfunding to help with rehabilitation expenses and other related costs.The relationship between crowdfunding and insurance
The relationship between crowdfunding and insurance can vary. If crowdfunding acts as a substitute, an increase in insurance coverage rates might lead to a decrease in the crowdfunding sector. Conversely, if crowdfunding is a complement, both crowdfunding and insurance coverage may grow together. In this scenario, individual fundraisers continue to seek support for additional healthcare needs not covered by insurance. The nature of crowdfunding campaigns may also change depending on insurance coverage. Those with insurance might use crowdfunding for extra or complementary services, often making less urgent appeals. In contrast, individuals without sufficient coverage often seek urgent help for essential health needs.How is crowdfunding an attractive alternative in contrast to health insurance?
The limitations of traditional health insurance
Health insurance is designed to help mitigate the financial risks associated with medical expenses, but it has its shortcomings. Unlike auto or life insurance, which cover specific events, health insurance primarily focuses on routine and preventive care, often leading to high premiums. Additionally, the structure of conventional health insurance can discourage efforts to reduce overall healthcare costs. Even when insured, patients frequently encounter significant out-of-pocket expenses, and navigating the complexities of the system can be difficult.Why is medical crowdfunding an attractive alternative?
Medical crowdfunding offers a fast and transparent way to manage medical costs. Unlike insurance, which can involve lengthy approval processes and burdensome interest rates on loans, crowdfunding campaigns can be initiated quickly, allowing patients to start receiving contributions almost immediately. Crowdfunding campaigns can help cover costs for life-saving procedures such as bone marrow transplants, kidney transplants, and chemotherapy, ensuring that treatment is not delayed due to financial constraints.Accessing necessary care beyond insurance
Having health insurance does not automatically guarantee access to the medical care individuals need. With high premiums and restrictive coverage, many patients struggle to afford essential treatments and medications. Medical crowdfunding removes these barriers by enabling patients to directly appeal to their communities and beyond for support. This approach not only helps raise the necessary funds but also fosters a sense of community and compassion among those who contribute.Bridging the gaps in insurance with crowdfunding
Insurance coverage frequently fails to address all medical expenses, particularly for serious conditions that require long-term care. Crowdfunding can help fill these financial voids, providing additional resources that traditional insurance may not cover. This support can significantly enhance the quality of care and recovery for patients.How can patients with limited health insurance coverage use crowdfunding?
Patients with limited insurance coverage can use crowdfunding to supplement their medical expenses in several effective ways:
Covering out-of-pocket expenses
Health insurance frequently leaves patients with out-of-pocket costs, such as deductibles and copayments. Crowdfunding can ease these financial strains, allowing patients to concentrate on their recovery instead of stressing over how to manage these additional expenses.Funding specific treatments
There are times when insurance doesn’t fully cover advanced or experimental treatments. Through crowdfunding, patients can gather funds specifically aimed at these essential therapies, granting them access to innovative care that could significantly improve their situation.Paying for non-covered services
Not all necessary treatments are included in insurance policies. From specialised dental procedures to alternative therapies, crowdfunding can step in to cover these often-excluded services, ensuring that patients receive the comprehensive care they truly need.Managing high deductibles
A deductible is the amount a policyholder must pay out of pocket before insurance kicks in. High deductibles can create considerable financial stress for patients. Crowdfunding presents a practical solution for managing these hefty costs, reducing the financial burden and making healthcare more attainable.Supporting ongoing expenses
Chronic illnesses and long-term treatments often lead to ongoing costs, including regular medications and frequent doctor visits. Crowdfunding can provide a reliable source of financial support to help manage these recurring expenses, allowing patients to stick to their treatment plans without interruption.Covering post-treatment costs
After treatment is complete, patients might still encounter additional expenses, such as recovery care and rehabilitation. While insurance may cover the initial treatment, crowdfunding can help address these supplementary costs, ensuring that patients have the resources necessary for a full recovery.How Milaap can help
As healthcare costs continue to rise, relying solely on traditional health insurance is often inadequate. Medical crowdfunding presents a promising alternative, filling the gaps left by insurance and ensuring that medical expenses do not hinder access to essential healthcare. crowdfunding. In essence, crowdfunding has become an essential “safety net”, representing the spirit of humanity by extending a lifeline to those in need.
Through platforms like Milaap, patients can raise funds for various medical needs that fall outside the traditional health insurance framework. This community-driven approach ensures that those in need can access critical care without the crippling financial burden. Start a fundraiser on Milaap today and get the support you need for your healthcare needs!
Through platforms like Milaap, patients can raise funds for various medical needs that fall outside the traditional health insurance framework. This community-driven approach ensures that those in need can access critical care without the crippling financial burden. Start a fundraiser on Milaap today and get the support you need for your healthcare needs!
