Discount Plans versus Health Insurance

A woman from Las Vegas thought she was buyingcoverage at great rates. Managed care plans are the
health insurance. It looked and sounded like healthway to go for those who are limited on funds. They
insurance. The Las Vegas woman is not 65 yet, whichoffer the best policies for the least amount of money.
means she can't get Medicare. So, she went onlineMost of these plans are available to anyone and can
looking for health insurance. She ended up findingsave you a ton of cash. You can make the plan even
something called Healthcare Advantage, and signed upmore affordable by asking for a deductible, which will
after paying $100. Come to find out, this was notlower your monthly expense. Most HMO's do not have
medical insurance at all and the sales representativeone at all but, you can request one, and most basic
never told this poor lady. She found that out when herPPOs and POS only have a small one, usually $200 to
cards arrived in the mail. In tiny writing at the bottom, it$500 per year, which you can also asked to raised.
read, "not an HMO, PPO insurance or managed careThe co-pays are also very reasonable with these
company". This was a discount plan. These plans dotypes of plans. If you choose to purchase an HMO,
not have the same coverage as a full medical healthexpect to pay about $5-$10 per office visit and per
insurance policy. Make sure you know what you areprescription. With PPOs and POSs you will have a
getting and if it fits your needs.20% co-pay with both visits and medications. The
So what is a discount plan? The plans claims to savedifferences are how strict they are and you pay more
people money by offering discounts on physician visits,of a co-pay to have extra flexibility. Usually a PPO or
prescription drugs, dental work, eye care and otherPOS plan is less expensive and you have more
treatments for a monthly fee. Unlike normal healthfreedom to see whom you want so the insurer makes
insurance, which is very costly and very selectiveyou more responsible for payment. HMOs tend to be
about who it covers, a discount health plan acceptsthe least expensive and best policies for people with
everyone, no matter what health conditions they mayfixed incomes.
have. You will use a list of doctors that are willing toMake sure you know what your needs are and
charge discounted rates to the subscriber. Discount isdouble-check what you are getting. If you need full
not the same as coverage, and so you will pay moremedical coverage with low co-pay then a discount
for visits and other services that you wouldn't with aplan will not work for you. If you are already covered
regular medical plan. The average savings is only 25%by a medical group but have a large deductible then
that could be very expensive if you have to see ayou might benefit from the extra savings a discount
specialist or require surgery. These networks claim toplan can offer. Also, ask whether the plan is insurance
have as many as 400,000 doctors and 50,000that covers your treatment, or is a discount plan that
hospitals available to choose from, but what if none ofstill requires you to pay all medical bills yourself.
them are near you? You can get a savings of up toBeware of slippery sales pitches. Make sure you
30% on both generic and brand name drugs, whichknow what's being offered. Discount health plans may
can also be costly if you have multiple prescriptions oronly sell you access to a large mailing list of medical
they are costly ones. So if you have a health planproviders that it purchased commercially. Don't assume
already but have a high deductible, this extra plan mayyou're getting access to a large provider network just
help save you some money. But to use as a completebecause your discount card displays the network's
health plan, it really isn't designed for that and will costname and logo. If you plan to use a specific listed
you more than a great HMO.doctor, hospital, pharmacy or other provider, ask a few
HMOs and other medical plans can offer full medicalquestions before you sign up.