Discount Plans Vs. Health Insurance

Discount plans are appropriate for individuals from certain groups. Foe example if you are above 65 you would most likely not be able to qualify for conventional health insurance and will most likely opt for a discount plan. Most people are unaware of the differences between discount plans and health insurance because even insurance agents do not bother to clarify them. You may only understand differences between the two once your discount plan card arrives in the mail. Your discount card will state at the bottom in small script that it is not an HMO, PPO, or Managed Care (types of health insurance) Company. However before opting for either of the two it is integral that you ascertain your specific needs and what kind of coverage each provides at what rates. Health insurance companies claim to (potentially) save you thousands of dollars by offering discounts on medical care whether you visit a doctor, buy prescription drugs, dental treatment and other services for a monthly fee.

Health insurance policies are costly and offer limited coverage in comparison to discount plans. A discount plan covers every one irrespective of their health conditions. You would get a list of doctors that offer discounted rates to members of the discount plan. You can choose any one doctor in the network or visit a new one until you are satisfied. Discount plans usually offer higher savings in comparison to health insurance. For example they offer 25 percent savings on practically all treatments that can amount to substantial savings in case you require surgery or other expensive medical treatments such as implants etc. Discount plan networks have more than 400,000 doctors and 50,000 hospitals all over the country from which you can choose a health care provider. You can also save up to 30 percent on both general and brand name drugs if you have more than one prescriptions.

HMOs and other medical plans provide full medical coverage at reasonable rates. People who have limited funds should opt for Managed Care Plans since they provide the best deal at the lowest costs. Most discount plans are available to practically everyone and can help accumulate substantial savings. You can make your discount plan more affordable by selecting a deductible lower than your monthly expense. If you purchase an HMO be ready to pay about $5 to $10 per prescription. Generally PPO and POS plans are more reasonable priced and you have liberty to see what you want before the insurance company holds you liable for payment. HMO is the least discount plan expensive and is the best choice for people with fixed incomes.

Always understand your health insurance needs and double check what you are getting. If you require full medical coverage with low co-pay (deductible) then discount plans are probably not the suitable option for you. If you are already enclosed by a health group but have a huge deductible then you can benefit from extra savings offered by a concession plan. Always ask whether the discount plan you are buying is an insurance policy or a medical plan that requires you to pay all the medical bills yourself. Be aware of what is offered along with various features of both health insurance and medical plans. Do not assume under any circumstances that you will have access to health care providers because your discount plan membership card display their name and logo.