Discount Health Care Plans May Leave You Shortchanged

Friday, Apr 25, 2008

LITTLE ROCK – Accessing affordable health care is not only a concern for Arkansans, but for the entire country. As usual, where there is a need experienced by consumers, there will be some less-than-honorable providers trying to take advantage. Today, Attorney General Dustin McDaniel wants to warn Arkansans about some of the issues that arise when considering whether to purchase "health discount cards" or "medical discount plans" that are marketed to consumers.

"Our office has already received numerous inquiries from consumers about this issue," said McDaniel, "and while these plans or cards may offer some benefit to consumers, they should not be confused with legitimate health insurance."

Health discount cards or medical discount plans purport to allow users to pay a fee in exchange for a list of providers and sellers of healthcare products who are willing to give discounts to people enrolled in the program. So, one issue for the consumer is whether the plan has secured the participation of an adequate number of providers. Arkansas law requires the sellers of these products to execute contracts with each medical provider who is listed as participating in the plan.

Before enrolling, consumers should take time to determine whether the plan provides assistance with the health care costs with which they need help. The Federal Trade Commission (FTC) has found that many sellers of medical discount plans and cards use misleading promotional material regarding the supposed benefits of the plan, claiming that enrollees can save large amounts of money on anything from routine doctor visits to prescription drugs. Many plans fail to meet those claims, and plan members often discover that they paid for a service that offers little in return.

If you have seen advertisements and are considering purchasing a health discount card or enrolling in a medical discount plan, here are some tips to remember:

Make sure legitimate contact information is available for the seller so that you can get more information.
- Don't do business with any seller that cannot produce a list of providers immediately.
- Before paying any money to enroll, call the providers who are listed as participating in the plan and inquire as to how much of a discount they actually offer. You should also inquire as to the specific medical procedures and other benefits that are covered under the discount card plan.
- Take time to read the fine print and calculate how much you might actually save if you choose to enroll in a discount plan, taking into account that you may be required to pay a lot of money up front and additional costs down the road.
- Keep in mind that Arkansas law gives consumers a 30 day right to cancel a health discount card without penalty.

If you have any questions or concerns about health discount cards or medical discount plans, contact the Public Protection Department of the Arkansas Attorney General's Office at (501) 682-2341 or toll-free statewide (800) 482-8982.