Discount Health Plans

I just received yet another call today from a lady in Colorado who got stuck with $28,000 in hospital bills for kidney stones.  Unfortunately this is another example of "learning the hard way" that discount health plans are basically scams and should be shut down.  Regardless of what you think, they certainly do more harm than good.  I also see a growing population of immigrants being turned to these plans and being taken advantage of since they don't necessarily understand what "real" health insurance looks like and how it operates.  I think it's sadder still that they're being taken advantage of by their own kin because they speak the same language.  I'm not sure they understand fully what The American Dream is all about. 

The only example I've come across that seems to make any sense for these plans is for the illegal immigrants since they can't get health insurance.  But, that opens up a whole different conversation.  I put these warnings out there to hopefully save you some money down the road, but unfortunately there's nothing I can do after you find out the hard way.  If the government wants more people to be covered by health insurance, they need to get rid of the catalysts preventing them from doing so and DISCOUNT HEALTH PLANS should be a priority.

I talked to a client yesterday and was floored at the tactics some companies are using.  First, according to her, she talked to someone from www.surehealthplans.com and the salesperson (notice I didn't say agent, because you don't need a license to sell these) was trying to convince her that it was a health insurance plan.  So, there's another discount plan to avoid.

Again, according to her she was talking to a couple different people from www.hbdc.com a.k.a. www.healthbenefitsdirect.com and they told her that without her Social Security number and banking info they'd be unable to give her a quote.  To get a quote you need little more than a zip code and a date of birth. Height, weight, and health status help the quote become a little more accurate, but under no circumstances should you give out that type of financial information until you are ready to apply for a plan.  When you buy a plan you must give that information and that's why they ask because many places will sell you the discount plan without your knowledge hoping you never notice them taking money from your bank each month.  I know this because I get calls daily wondering why someone is taking money from their account.  Again, they can get away with it because when you don't have a license, you don't have a license to lose.  Be a smart consumer and deal with us so you don't have to worry about that.  InsurancePickle.com keeps THEM from getting YOU into a pickle!

Someone used this line in an attempt sell a discount plan to a consumer today as if it were a health insurance policy.  Health Insurance is not like a credit card and you'll NEVER, EVER be pre-approved.  I've also heard that "open enrollment ends this month."  These are just attempts to get consumers to buy a potentially hazardous product if purchased without having health insurance.  Shortly I'm going to do a full article in our learning center about discount plans, but for now this will be your warning.

Understand these points:

1. Discount plans ONLY allow you to pay the "network negotiated rate" for the service received instead of the doctor's full price,
2. YOU PAY 100% of the cost even though it may read "up to 80% discount"..."up to" could also be NO DISCOUNT --  so if it's a $150,000 medical bill you ARE likely responsible for MOST of that cost,
3. There is no approval process for a discount plan other than your credit card being processed or your check clearing the bank, so if they don't ask any health questions you're not buying insurance (99.9% of the time),
4. People selling discount plans need NO license to sell them since it's not insurance; therefore, they have no license to lose by lying to you,
5. Don't buy something over the phone without seeing something, like a brochure, verifying what the salesperson is telling you.  If it sounds too good to be true, it may be.
6. A $5,000 or $10,000 deductible health insurance plan still provides the same network discounts at a usually lower cost than a discount plan.  That may seem like a high deductible to you, but after the deductible the insurance company would pay most, if not all, of the additional covered charges.  With a discount plan there is no payment coming from the company to the doctor or hospital so there would be NO CAP TO YOUR FINANCIAL RISK.  If the discounted bill is $150,000 you'd pay the whole thing.  So, when they advertise "No Deductibles" that's not a good thing -- but they certainly make it sound like one huh?
7. Look up "Discount Health Plan Warning" in a search engine a look at how many states put out warnings.  

There are situations when a discount plan is the only option, but please be a smart consumer.  If you are ever unsure please call my office at 1-877-634-1256 and I'll help you out. 

The husband of a coworker of a client had a heart attack last fall and they didn't have health insurance.  Their house is now for sale to help pay the bills.  Also talked to an associate of mine whose friend's baby came 10 weeks early.  One month in the hospital for the baby totalled $750,000....think they take double coupons?  Of course they were smart enough to have health insurance.  Momma, baby, and their wallet are doing just fine.