Comments on: Are Discount Health Plans a Scam?

By: robbie

robbie — Wed, 17 Aug 2011 16:57:02 +0000

actually the larger the bill the more you can save. and yes you do have out of pocket expense, but you also have a rate that never increases and never denied coverage. if you can afford insurance premiums then great. but this is for those who cant. if you cant afford 800$ a month then this is a safety net to keep you from going bankrupt. i have used this and its great. its not insurance, but it is affordable to everyone, and will at least help take the burden off the threat of a mojor catastrophy. with the rising cost of health care this could be the way all health coverage goes in the next 10 years. remember, when health ins. started, it was considered a scam to pay this company money every month and then you might not even use it. and look how times have changed. now everyone has or wants coverage.

By: DR

DR — Fri, 25 Feb 2011 12:01:44 +0000

Ron, thanks for sharing your experiences with discount medical cards.

By: Ron

Ron — Thu, 24 Feb 2011 18:28:36 +0000

I am an insurance broker and I decided to introduce a discount health plan through my agents to my client companies in January 2010. We marketed the product for a year (one of the largest ones out there) and here are the problems we ran into:

1. This is virtually useless if you have a ppo, hmo, or good hsa/hra. The plans DO NOT work in conjunction with real health insurance as providers will not accept both at the same time. This also went for Rx’s.

2. Many providers listed in the “discount provider” section were not even aware they were listed and could not/would not provide discounts to our customers.

3. Customers, on average, kept the plans for 3-4 months before dropping them. We audited each cancellation and found the overwhelming reason was: not enough value for the cost.

4. Our small business clients (ones we have had for years) only had a 4% participation among their employees. They just couldn’t see the value in such a plan.

The conclusion I came to was this: people who can’t afford health insurance can’t even afford the discounted rates the providers in the discount network offer. They don’t go to the doctor or dentist unless it’s really serious and that’s when this discount plan is pretty useless since the costs to the patient are sky high on serious illnesses/injuries.

Also, this plan is appealing more to MLMer’s who are looking to become wealthy working from home or over the internet. If you strip away the commissions paid for recruiting others at $400+ there really is no sustainable business model here because demand just isn’t high enough for this product.

By: Jay Mason

Jay Mason — Thu, 16 Sep 2010 14:30:48 +0000

The best plan I have found is AmeriCard.

By: AdoraStaten

AdoraStaten — Sun, 28 Mar 2010 00:57:17 +0000

I agree. Do your research and check out the providers. I would give this company a try and they are not insurance. It’s worth getting for those who can’t get health insurance or qualify for state aid.

Good article

By: Richard Cooper

Richard Cooper — Tue, 16 Mar 2010 01:29:41 +0000

This is a great dental discount plan. Available for use immediately, and I did. I got it one day for about $7 and a one time fee of $20. In any event, I live in Alpharetta, GA. I paid my monies and was easily guided to a list of providers. Not some crazy people in boxes, REAL dentists. Imagine that. Anyway, I saved about $250 dollars. I paid $126 to get a limited oral exam, the xray, and the filling. At that dentist, I recieved the best filling I’ve ever gotten. Check them out.

By: Frugal Babe

Frugal Babe — Mon, 22 Feb 2010 18:17:27 +0000

I think the main problem with discount plans is what happens when you have a truly catastrophic medical expense. Even if the published savings that they talk about are true, they usually only list small expenses (like in the chart above, with the highest charge being $455). What happens if you get cancer? Or have a heart attack? Or have a premature baby who has to be in NICU for two months? Reputable health insurance policies have annual maximum out of pocket exposure, whereas discount plans do not. Your expenses will just keep piling up. And often the discounts aren’t so great on more expensive services anyway.
It’s important to remember that health insurance – like any insurance product – is there to protect your assets and prevent bankruptcy in the event of a medical claim that is unexpected and large. Even if a discount plan can save you a few dollars here and there on doctor visits, you’ll want to ask the company what would happen if you have a six-figure medical expense… and use that information to make your decision.
Thanks for a great article on an important subject.

By: Best Discount Benefits

Best Discount Benefits — Wed, 17 Feb 2010 22:19:14 +0000

Discount medical programs differ from healthcare insurance in several important ways. Discount health care plans are available to anyone. Unlike traditional insurance, you are immediately qualified. There can be no denial for health conditions, you may begin using services immediately, and there is no paper work to process. Services are unlimited throughout your membership period for the same low membership fee. Getting started is easy, and your acceptance is guaranteed.

Your membership fee entitles you to unlimited services throughout the year with no maximums on services. You may receive services as often as needed and still receive the same pre-negotiated discounted rates. In comparison, traditional insurance requires costly deductibles, imposes limits on the number of times you can receive services and establishes annual maximums on services.

Simply enroll online anytime, and you are immediately accepted regardless of your age or pre-existing conditions. A membership card will arrive by mail in 7-10 business days. Once you have located a provider in your area using the Provider Services Directory, simply make an appointment and show your membership card when you arrive for your appointment. Then you just pay the pre-negotiated discounted rate at your time of service. You’ll love how you save money using these plans. Don’t get caught paying full price for your health care!