Discount health insurance programs are available to those who cannot qualify for or afford regular health insurance.
Discount health insurance programs sell plans to individuals and families who are looking for ways to lower their medical costs. These programs offer several types of discount plans covering different services associated with health care. However, those who are shopping for discount plans should shop carefully, as some are not as beneficial as advertised.
About
Discount health plans are sold by businesses, not insurance companies, to help defray the costs of health care services. These companies negotiate lower prices with doctors in exchange for more patient business. Members of these plans pay a nominal fee, either monthly or yearly, to have access to these discounted rates. Individuals can choose several types of discount plans that cover services related to health care, including dental, vision and prescription drug services.
Advantages
Discount health insurance plans are easier to get accepted into than regular health plans. Individuals do not have to take medical exams and are not denied coverage if they have pre-existing conditions. There are also no deductibles or co-payments to satisfy. Members are able to visit doctors of their choice who participate in the plans regardless of location.
Disadvantages
Savings that are advertised by these companies may not be what they seem. In fact, companies may incorporate hidden fees into discount plans that can cause members to pay more than what they are saving. Plans also may not accept members who have seen doctors within the previous 12 months before applying. Also, discount health plans are not accepted by all medical personnel. This means that if a person loses their insurance and picks up a discount health plan, he may need to find another doctor as his previous one may not accept his discount plan.
Warnings
Discount health insurance plans are not considered insurance. Companies that advertise them as insurance, along with discounts that don't exist or that provide a list of doctors that don't actually participate in their programs are committing fraud, according to the Federal Trade Commission. These plans do not prepay or reimburse for medical services sought by its members. These plans are also not regulated by state government agencies, as standard health plans are. If there are any complaints concerning discount plans, they must be forwarded to the Better Business Bureau (BBB), Federal Trade Commission (FTC), state attorney general offices and local consumer protection offices.
