Discount Plans vs. Health Insurance

There are a lot of ads on television, radio and even in email touting health discount plans. Most of these plans proclaim they are open to everyone and can help you and your family take advantage of the costs associated with medical health care. To their credit, the ethical health discount plans go to great lengths to distance themselves from health insurance, even posting prominent banners on their web sites stating that they are discount health plans, not health insurance. But is there really any advantages to enrolling in a discount health plan instead of getting health insurance? That depends on your circumstances. Here is some information about discount plans vs. health insurance that can help you determine which option is best for you.

Discount health care plans essentially contract with doctors and health care facilities to offer their members discounted rates for office visits, procedures, prescriptions, and tests. Usually this is a fixed percentage of the typical and usual fee. The member is responsible for paying the remainder due at the time the medical services are provided. This contrasts with health insurance, where there may be a deductible to pay up front and then the health care entity will file the remaining balance with the insurance provider. All things being equal, discount plans vs. health insurance means more out of pocket expense for the consumer when medical procedures are needed. On the other hand, the monthly cost for being in the discount health care plan is usually much lower than a monthly insurance premium. For someone that is not ill often and does not face a major medical emergency, the discount plan may be an attractive option.

Another consideration in the discount plans vs. health insurance is the fact that health insurance usually has some prohibitions on pre-existing conditions. Discount plans have none at all. That makes the discount health care plans very attractive to persons who have been turned down for health insurance. Even a discount on medical fees is better than having to pay the full amount out of pocket. In terms of providing some relief from the cost of medical care, discount plans certainly are an advantage for people that cannot secure health insurance.

Closely related in the discount plans vs. health insurance is the fact that some people simply cannot afford health insurance premiums, due to being out of work or other factors. When this is the case, the much smaller monthly payments for discount health and dental plans help medical care to be within their means. Along with this reality, discount plans vs. health insurance may also be an option to provide discounted medical care on options that the health insurance does not cover. For example, if your health policy does not cover dental services, then get a discount dental plan to supplement your health coverage. Discount dental health plans are usually as affordable as discount family health plans, so the extra monthly charge will not be much to get supplemental help with dental or even vision expenses.

As with any expenditure, it is important to compare options before signing up for anything. This is certainly true with the whole discount plans vs. health insurance issue. Read discount health plan reviews and learn about free discount health plans before you commit yourself, just as you would with health insurance. In the end, only you can determine whether discount plans vs. health insurance is the right option for your current situation.