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The Truth About Discount Health Plans

Someone called you today about a plan that sounds too good to be true. Right? Guess what.

It IS too good to be true, and that's mostly because it's probably NOT TRUE! Do you know why? (read below for answers on how to protect yourself and get quotes for REAL health insurance that can be cheaper than a discount plan anyway! - and download FTC ALERT! - keep reading....)

But first, which plan would you choose?

Plan A
Plan B
Age 35
Age 35
Monthly Cost for plan
Hospital Bill (example)
Network Discount
Remaining Bill
Deductible & Coinsurance
Not Applicable
Plan Pays

So, which plan did you choose? Plan A is an insurance plan by a reputable company. Plan B is a discount plan -- not such a "prudent" or "sure" plan as described is it?

Plan "B's" web site reads "UNLIKE INSURANCE, THERE IS NO BOTHERSOME PAPERWORK OR BILLS TO MAIL." And why is that a good thing? As if it were easier to have to sell your home to pay the hospital bills.

Read these points....

  • Discount plans ONLY allow you to pay the "network negotiated rate" for the service received instead of the doctor's full price (you get that benefit with insurance anyway),
  • 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,
  • 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),
  • Most of the time they'll use words like "plan," "benefits," "association," "health care," but they'll never use the word "insurance" --- at least not in print.
  • People selling discount plans need NO license to sell them since it's not insurance; therefore, they have no license to lose by exaggerating the benefits of the plan, (I'm just going by what my clients tell me they were told)
  • 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.
  • 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 (with a comprehensive insurance plan) 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?
  • Look up "Discount Health Plan Warning" in a search engine a look at how many states put out warnings. EVEN THE FEDERAL TRADE COMMISSION (FTC) put out a warning!  

If you still have questions please call me at 1-877-634-1256 and I'll help you out. I'll also let you know if the plan you have is a comprehensive insurance plan. The bottom line is you can get an insurance plan that can give you the same discounts, but also give you coverage that you need to protect yourself from finacial ruin. DON"T FIND OUT THE HARD WAY. Get real quotes now and call your credit card comapny to cancel that discount plan when the insurance is approved. Also do not give anyone your credit card or bank info unless you're ready to make a purchase. UNDER NO CIRCUMSTANCE is this info required for a quote (as you'll see below). Click this link below NOW....

Choose Your State below..

Quote/Info Request

If you need help or would like us to recommend appropriate health insurance coverage, call us or fill out this online form.

List of known Discount/Membership Plans:
The following is the list of known discount plans (we do not guarantee this list to be accurate or complete -- if you see an error we'll gladly fix it. If we're missing a plan let us know). These are mostly "Plan B" plans from above and no license is required to sell these plans. Most are sold by some sort of multi-level marketing company (think Amway). Always go through an insurance broker that can lay out one of these plans next to a comprehensive health insurance plan so you can understand the difference.

Some plans do offer some "insured" benefits, but make no mistake that doesn't mean they are comprehensive insurance. Usually they give you an indemnity benefit of say $500/day in a hospital....but that's still all you get even if the hospital costs $2,000, $3,000, or more per day. I personally received a bill for a one day hospital stay for more than $8,000. I would not have wanted to see that bill knowing I was only getting $500 towards the cost. None of the plans below (as far as we know) are comprehensive health insurance plans. Some are pure discount plans and some are membership plans with some insured benefits. In absolutely no case should you buy one of these plans without comparing it side by side with your insurance broker to a comprehensive health insurance plan. The message here is to understand what you're buying and don't buy it because "it sounded good."

  • Ameriplan
  • Beniflex
  • Cinergy Health
  • Prudent Choice
  • IAB -- International Association of Benefits
  • National Association of Private Enterprise
  • Sure Health
  • United Services Association
  • Health Advantage
  • Health Care Advantage

Someone trying to sell a plan to you that's not on this list, but it appears to be a discount plan. Step one, does the plan cost the same no matter where you live and no matter what your age is? If the answer is "yes," then it's likely not a comprehensive health insurance plan. It's much more expensive to insure a 55 year old than a 25 year old.

Discount plans are for a very small group of people. First, if you can't qualify for health insurance and second if you can't afford health insurance (but, not "don't want to afford"). If you're looking for a low cost plan just get a $10,000 deductible at you'll get the SAME network discounts (sometimes better) as the discount plans, BUT if it's a "big" item your maximum risk is usually the $10,000 and not hundreds of thousands of dollars as it would be with a plan that's not comprehensive health insurance.

Many plans are sold by people with little to no training who happened to have $49.95 to join a network marketing company (also known as a pyramid structure or multi-level marketing -- mlm). I would venture to guess that a large percentage of them had no idea what they were selling. They were lured in by promises of a lucrative income. This isn't always the case, but it is the case that I see most of the time.

Yes, I offered one or two of these types of plans for the 1% of the time it made sense to get one, but became frustrated by the lack of supervision of the company's salespeople. I determined it would be a better business decision to not even associate with the companies selling them. They just seemed to care about selling the plans and they didn't mind that the products were sold incorrectly. In some cases they were separating folks from plans that were covering their illnesses replacing it with plans that didn't.

Also, you'll probably want to avoid surgical and limited benefit plans. These are indeed insurance plans sold by licensed agents and I have some on our site by reputable carriers, but I don't recommend them. Why would you want to buy a plan that covers just hospital stays? Cancer doesn't always get treated as 'in-patient' which is what some plans cover. You want to make sure 'out-patient' has the same benefit as 'in-patient.' That would be like buying a life insurance policy and saying that I want my family to get paid if I have a heart attack, but not a stroke. You want everything covered.

After all of this if you are torn on what to believe please download this Federal Trade Commission CONSUMER ALERT
by clicking here

Then get quotes for REAL health insurance by clicking this link below..

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