December 05, 2007
If you read question boards for insurance topics like Yahoo Answers one of the most common questions is “how do I get affordable health insurance?”. Since the average cost for family health insurance in now $1000/ month, basic coverage is out of the question for most working families. Into this void has stepped minor medical policies, scam artists and medical discount cards. Know what you’re getting and let the buyer beware!
Minor Medical Policy- OK, I made that term up; what I’m referring to is medical insurance policies where the insurer covers up to a certain dollar figure, say $2000 - $5000 dollars, then coverage gives out. So things like doctors visits and minor treatments would be covered but major procedures would only be paid up to policy limits. Major players in this market are United American and MEGA insurance. The value of these plans is debatable; you’re covered for routine medical but are setting yourself up for a major financial meltdown. Prior to the mortgage meltdown caused by crooked lenders, the leading cause of foreclosure was death or illness. A major health event could start you on the road to bankruptcy. For the money you may want to investigate a high deductible major medical plan.
Scam Artists- As a licenced agent, I get periodic warnings from the State Department of Insurance (DOI) warning of scam artists, posing as insurance agents selling group health policies at terrific rates. After several months of milking their ‘clients’ for premium $$ they vanish and are never heard from again. Protect yourself. If a offer sounds too good to be true, it probably is. Each state has a DOI; check your agent’s name against their web site. If the name doesn’t show up, or they’re not in good standing, call the police and file an insurance department complaint.
Medical Discount Cards - Be very wary of medical discount cards. They are not regulated by the Department of Insurance nor do the people that sell them need to be licensed. This means you have little recourse when you have problems with the plan. If you are tempted by the low price and claims of “save up to 80%” be aware that very few doctors actually take these cards. It does you little good if you have to drive 4 hours to find a doctor that will accept the card. The state of Montana investigated one company couldn’t find any doctors in the whole state that actually took the card and only one dentist who was on probation for unlawful activities so they banned the sale of the card and fined the company. See this link http://www.insurancejournal.com/news/wes… for more information. Many other states are starting to ban these cards as well.
Before signing up with any discount plan get a list of doctors. If they won’t give you a list consider it to be a scam. Call the doctors on the list to make sure they’re still taking the card (many don’t even know that they’re listed as a provider) and that they’re accepting new patients.
