Problem Solvers takes a look at discount medical plans
PORTLAND, Ore. – With so many people out of work, finding affordable health coverage is a tremendous challenge. Sometimes, however, you get what you pay for.
You may have seen advertisements on TV or on utility poles for cheap health plans. Well, we discovered some of those plans could end up costing more than you realize. Many times, the so-called health plans are not insurance at all.
Since being laid off, Frank Vandolah has been searching for health insurance that he and his wife can afford. So when he saw an ad promising savings up to 60 percent for just $95 a month, Vandolah jumped on the phone – thinking he was signing up for a great health insurance plan.
"It wasn't until I received their booklet and I had signed up that it was noted that 'this is not health insurance,'" Vandolah said. "I thought, oh boy."
The Oregon Insurance Administrator, Teresa Miller, said what Vandolah really signed up for was a "discount medical plan."
"It's absolutely not insurance," Miller said. "So the consumer is going to be paying that bill [to] the provider. It's just going to be a reduced amount."
Think of it like a warehouse store for medical services. However, you're limited to only the services and doctors the discount plan carries.
Vandolah found that out when his wife tried to get a colonoscopy. "Most of the [doctors]," he said, "wouldn't even take it."
Other consumers opt for something called a "limited benefit plan." It's a health plan that provides fewer benefits than, say, comprehensive or major medical plans.
By law, the plans' brochures have to tell you that the policy is not insurance or provides only limited coverage. However, the bottom line may not always be clear.
Call the state insurance division for your state:
- Oregon (888) 877-4894
- Washington (800) 562-6900
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