DISCOUNT HEALTH PLANS-WHAT ARE DISCOUNT HEALTH PLANS?
Discount health care plans are not insurance, but as their name implies, these plans offer
discounts for medical services from hospitals and doctors. Discount Health Plans usually
charge a membership fee in exchange for a list of health care providers who will provide
services at a discount rate to its members.
ARE DISCOUNT HEALTH PLANS REGULATED LIKE HEALTH INSURANCE?
No. Discount health plans are not considered health insurance. Therefore, they are not
regulated by the State Corporation Commission’s Bureau of Insurance. If something were
to go wrong with a discount health plan, the consumer protections available to purchasers of
health insurance regulated by the Bureau of Insurance would NOT extend to the purchasers
of discount health plans.
To make sure the insurance coverage you are considering purchasing is offered by a licensed
insurer in your state , call your state Bureau of Insurance
HOW ARE DISCOUNT HEALTH PLANS MARKETED?
Many discount health plans are sold through direct mailings to consumers or via faxes and
the Internet. Others are advertised on television or in local newspapers.
If you drop your health insurance after buying a discount
health plan and later decide to buy health insurance again,
your new health insurance may not cover pre-existing
Review your discount health plan information carefully. It
may not guarantee advertised services.
Seniors should be especially cautious when considering
these plans. Some providers may not honor discounts for
Medicare reimbursed services.
Call the participating providers that you want to use to
make sure they will accept the discount that is advertised.
Check to see if any deductibles apply.
Ask about the plan’s cancellation and refund policy.
Keep copies of all materials you submit and receive from
Remember: If it seems too good to be true, it probably is.