How do discount health plans work? You agree to pay the discount health plan company a certain amount of money each month or year. For payment of this fee, the plan that will give you access to discounts for health care services or prescriptions if you go to the provider (doctor, medical care facility, hospital or pharmacy) that has a contract with the discount health plan. The provider has agreed to accept a lower payment from the discount health plan member. The discount is usually a percentage of the provider’s regular fee.

They are similar to discount dental plans that have been sold for many years. For example, you enroll in the plan and pay a monthly fee of $12. When you visit a dentist that is part of the network, you pay 20% less than the amount charged to other patients. You get a "discount." If the fee for a cleaning is normally $65, you would pay $52. The dentist accepts this amount as payment for the cleaning. No claims are submitted as discount plans are not insurance. Your monthly fee entitles you to a discount on services provided by the dentist.

Discount health plans can be confusing because they are not insurance. You still must pay the medical bills yourself. These cards simply allow lower prices on services that accept these discounts. The ads for the discount health plans can make it seem like they’re selling health insurance. Ask questions before enrolling in a discount health plan:

• Insurance or discount. Ask whether the card is insurance that covers your treatment or is it a discount card that sill requires you to pay all the bills yourself.
• Slippery sales pitches. Beware of plans that advertise "Guaranteed" benefits, "Long-term care" discounts, "affordable health coverage" or "Save up to 60% on healthcare." These claims make it sounds like health insurance.
• Fine print. Does it agree with the promises of the sales person?
  Treatments. Does the card offer discounts on the care you need? Find out exactly what discounts are offered. Prices should be clearly listed so you can make a comparison.
• Hidden fees. Are there large administration fees?
• Refundable. May you cancel at any time?
• Complaints. Contact the Better Business Bureau or Division of Insurance to see if complaints have been filed against the company.

Remember, these plans are not health insurance. Be an informed consumer.

At Nonprofit Resources, we offer a wide range of competitively priced insurance products. Remember, a portion of the profits earned by Nonprofit Resources is used to support Colorado Nonprofit Association programs. Please ask us for a quote when you are purchasing insurance for your organization. You can reach us by phone at 303-894-0298 or toll free at 866-537-1142.