Medical Discount Plans are NOT Health Insurance…know the difference between the two before you buy

Posted by Andrew Friesner

April 28, 2009

Medical discount plans can be useful for some consumers looking to save money on health care. But they’re not the same as health insurance. Medical discount plans don’t pay any of your health care costs; instead, they require you to pay a fee for a list of health care providers and sellers of health-related products who are willing to offer discounts to members of the plan.

According to the Federal Trade Commission (FTC), the nation’s consumer protection agency, some medical discount plans claim to provide big discounts from hundreds of providers for a wide range of services, from doctor visits and dental exams to hospital stays and prescription drugs. But many plans fail to make good on those claims. The FTC and many states have found that although some medical discount plans provide legitimate discounts that benefit their members, many take consumers’ money and offer very little in return.

When considering your options, know what you’re getting–medical insurance or a medical discount plan. If you’re not sure, check with your state insurance commissioner to see if the company offering the plan is registered to sell insurance in your state. If the company is not registered to sell health insurance and you want to buy health insurance, consider shopping elsewhere. By simply searching the internet and finding websites like www.healthinsurancechaser.com , you can get free quotes and apply online or call 1-877-775-4321 to speak to a professional and unbiased health insurance agent to help understand the ever confusing health insurance maze.

Remember that if you buy a health insurance plan, it generally covers a broad array of services, and pays you or your health care provider for your medical bills. If you buy a medical discount plan, you generally are paying for a list of providers and sellers who may be willing to offer “discounts” on some of their services, products or procedures. If you’re interested in buying a medical discount plan, you should investigate the details before you pay any money.

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