Understanding Your PRA: The Key to Smarter Healthcare Planning

Why Understanding Your PRA Matters (Especially During Financial Literacy Month)

Financial Literacy Month (April) is the perfect time to take a closer look at how your healthcare decisions impact your overall financial well-being. One of the most important concepts to understand as an Impact Health Sharing member—or someone considering joining—is your Primary Responsibility Amount (PRA).

Your PRA plays a central role in how your healthcare costs are shared, how you budget for medical expenses, and how you steward your finances responsibly.

Whether you’re new to healthcare sharing or already a member, understanding how the PRA works can help you avoid surprises, make confident decisions, and maximize the value of your membership.

What Is a Primary Responsibility Amount (PRA)?

Your Primary Responsibility Amount (PRA) is the portion of eligible medical expenses that you are responsible for paying before your sharing begins.

Think of it similarly to a deductible in insurance terms, but with some important differences:

• It applies to the entire household, not per person
• Once met, eligible expenses above your PRA can be shared according to Impact Guidelines
• Your monthly share is based on the PRA you select

How Does the PRA Work?

Here’s a simple example:

• You select a $5,000 PRA
• You incur a medical need totaling $20,000 in eligible expenses

What happens next:

• You are responsible for the first $5,000 to meet your PRA
• The remaining $15,000 may be eligible for sharing if related to an eligible medical need

This structure allows members to take more control over their healthcare spending while keeping monthly costs lower than many who have insurance.

Do You Have to Pay Your PRA Up Front?

You are not required to pay your PRA in a single upfront payment. Instead:

• You pay your providers directly as bills come in
• Your payments accumulate toward your PRA
• Once your PRA is met, eligible expenses can be submitted for sharing

This flexibility can make it easier to manage large medical needs without needing a lump sum immediately.

Choosing the Right PRA for Your Financial Situation

Your PRA is not one-size-fits-all. It’s a decision that should align with your financial goals and financial comfort level.

Lower PRA

• Higher monthly share
• Lower out-of-pocket costs when a need arises
• More predictable expenses

Higher PRA

• Lower monthly share
• Higher out-of-pocket responsibility per year
• Greater risk, but potential for savings for those who are relatively healthy

Financial Literacy Tip:
Choose a PRA that you could realistically meet if an unexpected medical need occurred. Many members set aside savings specifically for this purpose.

Can You Change Your PRA?

Yes, members can request to change their PRA. However, it’s important to understand:

• Changes are typically subject to Guidelines and timing requirements
• Adjustments will affect your monthly share
• A new PRA does not apply retroactively to existing needs
• Your PRA resets on the first of the following month after switching, meaning you would be starting over with your out-of-pocket responsibility

Because of this, it’s best to think of your PRA as a strategic financial decision, not something to change frequently.

Special Consideration for Members 65+

For seniors age 65 and older:

• The PRA is $1,000
• This applies to eligible expenses not covered by Medicare Parts A and B

This lower PRA is designed to complement Medicare coverage while still allowing members to participate in sharing for additional needs.

How the PRA Fits Into the Bigger Picture of Health Sharing

Your PRA is just one part of how Impact works, but it’s a foundational one. When combined with:

• Lower monthly shares
• Provider choice and cost transparency
• Member responsibility combined with community sharing

…it creates a system that encourages intentional stewardship of healthcare decisions.

Common Questions About PRA

Is PRA the same as a deductible?

Not exactly. While similar in concept, a Primary Responsibility Amount applies to your whole household, not each person. (Note: Impact for Seniors is for individuals only.)

Does every medical expense count toward my PRA?

Only eligible expenses count, based on Impact’s Guidelines.

What happens after I meet my PRA?

Eligible expenses above your PRA can be submitted for sharing according to program Guidelines.

For answers to more questions about your PRA or anything else about the Impact program, visit our Help Center.

Financial Stewardship Starts With Understanding

This Financial Literacy Month, take the opportunity to evaluate how your healthcare choices align with your financial goals. Understanding your PRA helps you:

• Plan for unexpected medical costs
• Avoid confusion when a need arises
• Make informed decisions about your membership
• Steward your resources wisely
  

Final Thoughts: Setting the Right Expectations

Your PRA isn’t just a number—it’s a tool. When you understand how it works and choose it wisely, it becomes a powerful part of your financial strategy.

For current members, it brings clarity and confidence. For those considering joining Impact, it sets realistic expectations about how sharing works.

If you’re evaluating Impact, take time to evaluate your PRA options carefully. And if you’re already a member, reviewing your PRA regularly is a smart step toward better financial health.