What Is A Discount Benefits Plan? | Discount Plans Explained
For many of us the cost of health insurance has become unbearable. Yet we continue to pay for it month after month, mainly because we believe that our employer "covers" us. The truth is that they sorta kinda aren't really, but more on that later. You're here to figure out what a discount plan is.
A discount plan is also known as a fee for service plan and is a part of a growing trend in the United States where consumers decide to manage their own health care costs (rather than have an insurance company manage it for them). The consumer purchases a discount plan and is provided with a card which may be presented at any doctor, dentist, pharmacy, vision center etc which accepts that particular plan (not much different from insurance as not all providers will accept all insurance plans).
When the card is presented, the consumer will receive a discount of anywhere from 25% to 80% off on the cost of tests, examinations, drugs and other services provided..
A discount plan is also known as a fee for service plan and is a part of a growing trend in the United States where consumers decide to manage their own health care costs (rather than have an insurance company manage it for them). The consumer purchases a discount plan and is provided with a card which may be presented at any doctor, dentist, pharmacy, vision center etc which accepts that particular plan (not much different from insurance as not all providers will accept all insurance plans).
When the card is presented, the consumer will receive a discount of anywhere from 25% to 80% off on the cost of tests, examinations, drugs and other services provided..
What Is A Discount Benefits Plan? | Discount Plans: The Pros
My wife started working again earlier this year, after several years of paying only $40 per month for our discount plan, she balked at the idea of paying $234.00 per month for health insurance. A discount plan allows us to save $2328 that we can put aside for any out of pocket costs.With a discount benefits plan :
1. You will pay for only as much care as you use, rather than paying thousands each year for a couple of hundred dollars worth of health care.
2. Everything is covered and everyone is covered - from your 90 year old grandmother to your newborn and your pregnant cousin who is currently living with you
3. No one is uninsurable - all pre-existing conditions are covered with few restrictions
4. You pay one price, the cost of the plan does not increase based on lifestyle the way insurance premiums do for smokers or those who live dangerously.
5. You are guaranteed the same rate for two years, so no unexpected surprises
6. You can get discounts on items like braces, cosmetic dentistry, cosmetic surgery, and Lasik
What Is A Discount Benefits Plan? | Why am I qualified to tell you about discount benefits?
I'm well into my 40s now, and all my life I believed that you got a job and you got health insurance, it's just what you did. Back in 93 when my wife gave birth, we were both working full time jobs with great health insurance that took several hundred dollars from both of our salaries monthly. We were confident that our insurance providers would cover all of the costs of giving birth.
Well guess what? They id not, and we worked a lot of overtime after my son was born to pay off the extra $6000 required for the anesthesiologist (my wife had a C-section), the extra days in the hospital (sorry only allowed 2 days for C-Sections, we don't care about complications) and heaven only knows what else.
At the time there were no alternatives and I know that we have spent quite a lot of money on dentists ( root canals, crowns, cleanings, extractions never seem to cost exactly what the insurance company would pay) , chiropractors, and doctors. We eventually got an HSA just to cover all those deductibles and additional costs.
When we found ourselves out of work and with no health insurance, we looked into health insurance plans for the unemployed. We noticed that most decent plans cost $150 plus per month and didn't include dental (we all have teeth), vision (my wife and son both wear glasses), or things like chiropractic and alternative health care coverage.
Our search eventually led us to a cheaper plan and after we spoke to a smooth sales guys we purchased one that cost less than 150 per month, but were disappointed when we got the packet in the and realized just how much we would have to come out of pocket on top of that $129 per month. We canceled that, and long story short eventually found one that we could afford. It cost $40 per month, covered everyone, and included everything - medical, dental, chiropractic,vision,prescription, legal discounts, identity theft protection and roadside assistance.
That summer I had a heart attack (or so I thought) and was rushed to the emergency room. I spent a day in the hospital being poked, prodded, drugged and tested. The bill was outrageous (over 25K) and we didn't qualify for their "assistance" program, but my wife remembered that our plan came with an option to submit your bills to this group and have them negotiate with the hospital and all the providers for you.
In the end we paid less than $10,000, this with a plan that we pay $40 a month for.
Well guess what? They id not, and we worked a lot of overtime after my son was born to pay off the extra $6000 required for the anesthesiologist (my wife had a C-section), the extra days in the hospital (sorry only allowed 2 days for C-Sections, we don't care about complications) and heaven only knows what else.
At the time there were no alternatives and I know that we have spent quite a lot of money on dentists ( root canals, crowns, cleanings, extractions never seem to cost exactly what the insurance company would pay) , chiropractors, and doctors. We eventually got an HSA just to cover all those deductibles and additional costs.
When we found ourselves out of work and with no health insurance, we looked into health insurance plans for the unemployed. We noticed that most decent plans cost $150 plus per month and didn't include dental (we all have teeth), vision (my wife and son both wear glasses), or things like chiropractic and alternative health care coverage.
Our search eventually led us to a cheaper plan and after we spoke to a smooth sales guys we purchased one that cost less than 150 per month, but were disappointed when we got the packet in the and realized just how much we would have to come out of pocket on top of that $129 per month. We canceled that, and long story short eventually found one that we could afford. It cost $40 per month, covered everyone, and included everything - medical, dental, chiropractic,vision,prescription, legal discounts, identity theft protection and roadside assistance.
That summer I had a heart attack (or so I thought) and was rushed to the emergency room. I spent a day in the hospital being poked, prodded, drugged and tested. The bill was outrageous (over 25K) and we didn't qualify for their "assistance" program, but my wife remembered that our plan came with an option to submit your bills to this group and have them negotiate with the hospital and all the providers for you.
In the end we paid less than $10,000, this with a plan that we pay $40 a month for.
Here's my favorite link:
What Is A Discount Benefits Plan? | The Current Health Care Crisis
The high cost of health care is a hot button political topic, but for the average American the main concern is cost. CBS News and Parents magazine both covered this.
- CBS News Story On The Dental Care Crisis In The United States
- Dental Insurance Crisis
One hundred million Americans do not have dental insurance and the lack of coverage is leading to problems such as school absence, unemployment and death. Michelle Miller reports. - Uninsured, undersinsured, or uninsurable?
- Is the high cost of quality supplemental health care getting you down? Are you one of 7 out of 10 Americans with no Dental saving program? Look no further it is now possible to access affordable dental, vision, prescription and chiropractic programs for your entire household.
- 25 Ways to Save Money on Healthcare
- Parents magazine recommends discount benefits plans as an alternative or addition to health insurance plans
What Is A Discount Benefits Plan? | Discount Plans: The Cons
Of course nothing is perfect. You may discover that there are no providers within 30 miles of your house (and if you live on top of a mountain that may be OK, but for the rest of us not so much).Another problem is that providers may not always accept the card even when you believed that they would (in which case you should call the discount plans customer service line and get clarification for yourself and the providers front office person who just may not know any better).
Each of these cases points to the fact that you should absolutely educate yourself about what you are getting into. Talk to people who use the plan, visit doctors who accept it etc.
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