Discount Plans
Discount plans are organizations which offer health and wellness services to members for a low cost. Members join a discount plan by applying by application and making regular payments. Discount plans offer savings on various medical costs that may include dental, vision, hearing, prescription, counseling. It varies according to the plan.
Companies which offer discount plans are not insurance companies. Discount plans are not the same as health care insurance and does not offer health coverage of any kind. Discount plans are not a substitute for medical insurance.
Some discount plans offer discounts off medical services. Participating physicians sign a contract with the discount company. The physicians agree to discount their usual fees and the discount is passed to the member.
A discount card aids members in paying less for medical services. Whether a member has health insurance or not, discount plans save their members money. However, it is important that members don’t spend more on membership fees for their discount plan than is saved by the plan. If members routinely spend a large sum on medical services and prescriptions, a discount plan will be beneficial.
Discount plans offer savings on various medical costs that may include things like:
- dental
- vision
- hearing
- prescription
- counseling
For those who are ineligible for health insurance due to a pre-existing condition, a discount plan may also be helpful. Companies that own discount health plans don’t pay the health provider for services as opposed to insurance providers who do. A discount plan only provides discounts on services, not payments for services. Some discount plans, however, may require that an applicant will not have visited a physician in the year prior to applying.
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