6/8/2010 11:38 AM (PST)

Netasja,

This company offers a discount health care plan to small businesses, self-employeed persons and individuals.The plan claims to provide information, tools, and support for healthcare needs. Consumers should be aware that medical discounts are not insurance.

Many medical discount plans claim to offer savings on prescriptions drugs, doctor and dental visits, vision care or other medical services. Advertisements - often found on the Internet, through infomercials or in "spam" e-mail - boast that consumers can save up to 30 percent or more on the cost for such services. Generally, the plans indicate there is a network of providers who have agreed to discount their charges if they are a plan member.

Many medical discount providers do not clearly disclose to potential buyers that they are not an insurance product, or in some cases advertising may intentionally be misleading. Consumers who are confused by these plans often believe they are purchasing insurance. Discount plans are not considered health insurance and currently are not regulated in all states. In California, these plans are regulated by the Department of Managed Health Care. Consumers should review plan materials carefully to be certain the benefits are worth the cost.

Before making a purchasing decision, keep in mind that discount plans can be sold by anyone at any cost with any benefits. They are not licensed insurance products, even when sold by insurance agents. The protections and rights available to consumers under health insurance plans may not be available to members of a discount plan. Providers in the discount plan's "network" are often not bound by contract to participate in the plan and may stop offering the discount at any time (without notice to plan members), depending on the plan. Many plans claim savings up to a certain percent. However, "up to 40%" does not mean a guaranteed 40% savings.

If you are considering enrolling in a discount plan, find out if the plan is considered an insurance product in your State. Ask about the annual cost of the plan, and get a clear understanding of what the benefits are. Find out if the providers you frequent accept the discount card. Be sure to check with your provider(s) as the information given by the plan could be inaccurate.