Are Medical Discount Cards The Insurance Of The Future?
It’s hard to avoid noticing the plethora of online vendors offering low cost medical discount cards these days. In fact these are not insurance companies, though it seems that way from their advertisements. Many have been misled and in some cases the deception appears intentional.
Medical discount cards don’t actually pay for any insurance. By purchasing one, you are merely enrolling in a plan which allows you to receive discounts from certain health providers who are also in the plan.
Then you the consumer buy the card, usually by paying a monthly amount for the ability to use these certain providers at a reduced cost. Without the card, you would be paying more for these same services. So everyone does win, however only if you understand what you are getting for your money.
The cards do have restrictions, however. Normally, only routine exams and procedures are covered by them. Hospitalization and trauma are not usually included. In these situations, you would need to have a back up health care plan for additional coverage. Also, the card plans may advertise large discounts of up to 50%. That may indeed be true in some cases, but the majority of providers only offer discounts of 10% to 20%.
The cards can be a good deal if they fit your needs. If you carry only catastrophic insurance, then this may be a good solution for you. Also, if you have a high deductible, you could benefit from a medical discount card. But just be aware that these are not insurance cards and are not meant as replacements to major medical insurance.