Understand the differences between health insurance and medical discount plans

WISCONSIN (CIVIC MEDIA) – Consumers have choices, and during open enrollment periods when time is limited, it is important to understand the differences between health insurance and medical discount plans. These plans are sometimes mistaken for insurance, but in other cases, they are misrepresented by dishonest sellers.

The Wisconsin Department of Agriculture, Trade and Consumer Protection (DATCP) and Office of the Commissioner of Insurance of Wisconsin (OCI) are partnering to educate and inform consumers during the current Medicare open enrollment period and health insurance marketplace open enrollment period. Legitimate medical discount plans usually charge a monthly fee in exchange for a list of providers and sellers who are willing to offer reduced prices on certain services, products, or procedures.

Some discount plans charge high prices for little benefit or are very limited in what services and medications they provide discounts for. Consumers should investigate. Dishonest businesses sometimes misrepresent medical discount plans as health insurance plans or a substitute for traditional health insurance.

If a plan claims to offer unusually high discounts or is made to seem like insurance but is never called ‘insurance’ outright, consumers should end contact, even if they initiated the conversation. For more information about or assistance with Medicare enrollment, consumers can visit medicare.gov or call Medicare at 1-800-633-4227.

Wisconsinites can also learn about their coverage options on the individual health insurance market at WisCovered.com. Consumers are encouraged to speak with a licensed insurance agent or broker by calling 608-261-1455 or 1-877-942-6837 to get connected with a navigator, or search for a Certified Application Counselor who can assist with enrollment.

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