Bankruptcy

Medical Bills: Beware of Discount Health Coverage Scams

By Chris Kramer

As healthcare costs continue to skyrocket in comparison to household earnings, many Americans are looking for ways to save on medical bills. However, not every deal is worth pursuing, and the Coalition Against Insurance Fraud reports some healthcare scams currently plaguing the nation.

Background

Because health insurance in the U.S. is most commonly linked to jobs, a high rate of unemployment means higher numbers of people are going without health coverage. And, thanks to lowered income for many households, affording healthcare can be a huge stumbling block.

According to sources, some companies are apparently taking advantage of vulnerable Americans by offering discount health products, which may not be a very good bargain.

Discount Plans vs. Health Insurance

Health insurance, as many people know, works like this: you pay a certain amount of money each month (called a premium) and when you need access to medical care, you only pay a portion of the price (called a deductible) because you?ve insured yourself against doing so.

Discount plans, on the other hand, offer discounts on the normal full price of medical services. They are usually restricted to specific caregivers and specific medical facilities. After receiving consumer complaints about some discount plans, investigators reportedly found that discount plans tended to:

• Overstate benefits: Advertisements for some plans misled consumers with claims about potential savings. For example, a plan might advertise itself as offering savings up to 60 percent, but provide a 60 percent discount on only one service.
• Offer insufficient savings: Those with chronic health problems or who make frequent doctor?s visits may see little or no financial benefits from these plans.
• Provide incorrect information: Some plans apparently guaranteed access to medical professionals who were no longer affiliated with the plan.

Making the Decision

If you don?t have access to or cannot afford health insurance, you may benefit from signing up for a discount plan ? the important thing to do is research the plan before committing to it.

These precautionary steps to anyone considering such a plan:

• Read everything. Look at the forms you?d be required to fill out and scrutinize the fine print. Make sure you know exactly what the plan includes ? and leaves out.
• Don?t jump the gun. Before opting out of another insurance plan, make sure the new plan you?re looking into will offer the kind of protection you need.
• Make some calls. Ask for the list of physicians that you?d have access to and call to make sure they?re still participating.

Remember: commercials tell you only what they want you to know so do a little digging before choosing any new medical product.

Additional Resources

Medical Bills and Bankruptcy

Full post as published by The Bankruptcy Blog on February 19, 2010 (boomark / email).