Officials warn about health-discount cards

Marion Davis

12/01/2008

CRANSTON – Prompted by a string of inquiries about a prominently advertised health discount card, Health Insurance Commissioner Christopher F. Koller’s office has issued a consumer alert urging the public to be careful with such cards.
The alert warns, for starters, that discount health cards are not insurance.
But in addition, the alert says, while “legitimate” cards “offer discounts on services from doctors, pharmacists and other health care providers that accept such cards,” others “others offer little or no value to the consumer.”
“It is important … that consumers understand what they are and are not getting when they purchase discount health cards,” the alert says.
Koller’s office urged consumers to take the following precautions:

Be aware that purchasers of these cards may have few consumer protections available to them, because the cards are not regulated as insurance is, so Koller’s office “may be powerless to assist the consumer.”

Check out the company selling the discount card, looking out for pitches that use words like “co-payments,” “deductibles” or “premiums” – which suggests they are pretending to sell insurance – or offer “affordable health care” without details of the savings to be provided.
Consumers can also contact local consumer protection and advocacy organizations such as the Koller’s office, the Rhode Island attorney general’s office, or the local Better Business Bureau.

Check the benefits, verifying, for example, that the health care providers and pharmacies that are said to accept the card actually does, and that the discounts are as described.

Watch out for “red flags” such as promises that a company can save you on health insurance, or a refusal to give consumers a list of participating health care providers, or a requirement that consumers provide debit or credit card information or a large up-front fee. “Legitimate discount card issuers will never suggest you drop your health insurance,” the alert warns.

The alert is available online at www.ohic.ri.gov.

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