Discount Cards

Sep 11, 2008

  1. DexterManleyReading
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    DexterManleyReading New Member

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    Was scouring through the ehealthinsurance website just to get some info while I prepare for my soon-to-be career as an agent. And I stumbled across "Discount Cards".

    Do any of you sell those? If so, can they be profitable? I see a lot of people on here get tired of dealing with the uninsurable, but wouldn't these be great ways to make a few bucks of of those types of clients? Or am I completely wrong?
     
  2. somarco
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    somarco That Medicare Expert Guy

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    Good way to get yourself in trouble. A few states have outlawed them while others are trying to figure out ways to regulate the sale.

    99% are pure, overpriced junk.

    Let the bottom feeders work those plans. Many are sold by folks who are not licensed agents and some are (were) sold under MLM schemes.
     
    somarco, Sep 11, 2008
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  3. Daytona_Guy
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    Daytona_Guy Guru

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    Yep, Florida is one state that has taken an aggressive stance toward agents selling "discount plans" when the client believed they had a real insurance policy.
     
  4. HomeService
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    UA tries to use a discount card as their doctors and outpatient provider. In other words, when asked by the client if the doctors office visit is covered -the agent goes on some strange rant about how the discount card gets the visit to be so cheap, it's like having a co-pay that's like $30. Yeahhhhh right. Eventually, the agent just forgets to mention it's a discount card, and it becomes a card to be carried in the clients' wallet that shows benefits, an insurance card of sorts. It can get you in trouble.
     
  5. Guest
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    Guest Guest

    There are some that you must be licensed to sell.
     
    Guest, Sep 15, 2008
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  6. HomeService
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    Let us look at this for a moment here:

    1. Discount cards= no health questions asked= guaranteed issue. { does not utilize "adverse selection" in weeding out health risks}

    2. no real insurance contract= not obligated to pay anything as far as benefits go, by contract

    3. no insurance co. backing this deal, for financial strength

    4. no insurance laws to deal with- company could literally fly away-by night

    5. no doctor is obligated to accept the discount plan

    6. no regulations as far as premiums, or fees, and as far as commissions go- no regulations

    Seems like a bunch of smoke and mirrors. I have seen some plans that do involve a nice accident expense portion of the plan, that is underwritten by an insurance company, for just that accident portion. However, the agent can always sell stand alone accident plans without these discount plans attatched, so what the heck?
     
  7. xrac
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    xrac Guru

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    xrac, Sep 15, 2008
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  8. myinsurebiz
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    myinsurebiz Guru

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    Well - I'll get blasted - but, I'm used to it.

    Medical Savings Cards have their place for those that are uninsurable or can't afford major medical.

    $49 a month gets you repriced everything.

    These cards get the client the EXACT repriced rate that an insurance company pays by using their PPO.

    I've got a Private Label (don't sell it anymore) using the Careington Network that has a Dental, Vison, RX component equal to any "real" individual crap you see out there.

    It's not insurance - but it has its advantages.

    Tom
     
  9. HomeService
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    I once knew an agent who wrote that Careington with every major med. ....just said, "you want dental and vision for $49 extra a month".... the prospect said yes a lot of the time. I have no clue if the agent really explained that it was a discount card.
     
  10. GreenSky
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    GreenSky Guru

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    You won't believe this but I agree with you. Too bad you no longer sell this because it sure is better than that final expense crap you sell you 30 yr. olds.

    Although it's not insurance, getting into a PPO network as a last resort is better by far than the mini-med plans that make people think they have coverage.

    I'm "pushing" this type of product for dental and like the concept. I like the concept for uninsurables as well.

    Rick
     
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