Is your health insurance plan really health insurance?
Friday, May 21, 2010
If you purchased a “discount medical plan,” your plan does not provide you with health insurance. On Tuesday, the House passed a bill that would give the Office of the Health Insurance Commissioner (OHIC) power to oversee the business practices of medical discount plans.
The popularity of discount medical plans has increased since national health care reform passed. In exchange for a monthly fee, discount health plans offer access to a network of health care providers at a discounted fee. Unlike health insurance, the consumer pays full price for medical services up front, subtracting any discount provided by the plan. Consumers, however, may easily confuse these plans with health insurance.
This legislation would establish standards for discount medical plans and protect consumers from deceptive marketing and sales practices. Discount medical plans would be required to register their business with the state as well as maintain a website that displays information about all health care providers and pharmacies qualifying for the discount. All marketing materials would have to prominently display the website and other contact information for the company. OHIC would have the authority to examine consumer complaints about any discount medical plan doing business in Rhode Island.
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTIn 2008, OHIC released an advisory about discount medical plans, warning consumers:
1) Discount medical plans are not health insurance.
2) Research the company selling the card.
3) Call your health care providers and pharmacies to be sure they participate in the discount medical plan before making a purchase.
This bill has been referred to the Senate Health and Human Services.
