Discount Cards

[Guest]

The discount is only good if you have the cash to pay on a timely basis.

Just like the repricing on an HSA.

Try walking into a 5 star restaurant with a discount card in your hand, no cash and no credit and see how far you get.

Maybe not 5 star, but restaurants do accept coupons for discounts.

If you are selling a limited benefit plan, there are some cash benefits. However, I do hear stories about claims being denied by these plans. Talked to a guy a few weeks ago with a limited benefit plan. His wife broke her leg and required surgery. The claim exceeds $24k. The carrier denied the claim as pre-existing . . .

Sure, and there are no problems (claims or treatment being denied) with Major medical.

Number of hospitals requesting up-front payments continues to expand

A few months ago, Fierce Health Finance recounted the tale of the M.D. Anderson Cancer Center, which drew considerable attention when in 2006, it asked a leukemia patient for $105,000 in cash up front because it wasn't satisfied with the extent of her insurance coverage. At the time, M.D. Anderson's policy was unusual enough to surprise consumers--and even some fellow hospital administrators.

Increasingly, however, these policies are becoming more standard. For example, in South Florida, an informal survey of 22 hospitals found that all have required up front payments for elective surgeries for years. Given how long such policies have been in place, patients are used to making up front payments. However, what's shocking some patients, they note, is just how big a payment they're having to make at times, given the growing size of their out-of-pocket costs. Patients who need a major diagnostic procedure might need to bring $2,500, or even $5,000 to the hospital, in fact.

Yeah, these plans are great.

To some consumers they are, especially when after 12 months their pre X's will be covered.

 

[myinsurebiz]

#1 - The discount companies don't have any skin in the game. They piggy back on rented PPO networks, mark their entry fee up by 300% or more to support the commission structure.

#2 -There is no guarantee the hospital or any other provider will ever see their money. Uninsured patients, with or without a discount card, stiff the providers on 90% of the bills.

#3 - Try walking into a 5 star restaurant with a discount card in your hand, no cash and no credit and see how far you get.

#4 - The discounts are not instant except some primary care services. Most of the discounts, with any plan, come after the claim has been filed and adjudicated.

1) Sure they do. They pay fees to the PPO Networks and other Ancillary Networks. Actually - I only mark up mine by 200% of cost of goods . . .

2) What? Bob - discount card holders MUST pay for services at the time of sale. Hospitals require 125% of anticipated charges to be paid upfront. Now - the hospitals in my Network have all agreed to $950 a day max - regardless of procedure.

3) If they had a contract like our members do - they would. In our Network only those vendors that WANT the business are members - otherwise - c ya . . .

4) Nope - you are thinking of a mini med or limited benefit. Discount Cards are instant and full payment is expected at point of sale.

#1 - What discount plans have contracted with PHCS? I guess its possible.

#2 - If you walk into a Doc office with a discount card they realize there is no insurance to pay any part of the claim. So they are charging up front and then filling the claim. At that point the discount holder might be eligible for reimbursement from the Doc. I am even hearing that some of the Doc make the card holder file the claims with the ppo for discount.

1) Many . . .

2) The vendors have contracts to honor the repriced rate regardless of whether cash upfront or insurance claim. With a discount card - services are fully paid at time of service. Which plan do you think the vendor prefers - cash upfront or wait for insurance company to pay? Bingo - Cash!

With my Network - qualified members can have their medical expenses financed through a partnership with a certain lender and the establishment of an HRA. I've seen members approved with a FICO as low as 400 if they have steady employment or decent collateral.

But - I'm not really in this biz anymore - but it is a good deal for the consumer if they get with the right Discount Card Network.

Tom

 

[HomeService]

I have no problem with mini-meds and indemnity insurance plans. I do have a problem with the discount cards. The discount cards are often MLM, are often not accepted by many doctors around here, and are often quite high for the benefits, and are often misleading to the consumer who thinks he is buying insurance. I do not care how many times the sales agent says it is not insurance, I don't care what it says on the card, the consumer is easily mislead. Call the consumer stupid, I don't care what you say about the consumer, but I think the person or company who is put in the position to mislead the consumer- is wrong for doing it.

 

[ABC]

1)

1) Many . . .

2) The vendors have contracts to honor the repriced rate regardless of whether cash upfront or insurance claim. With a discount card - services are fully paid at time of service. Which plan do you think the vendor prefers - cash upfront or wait for insurance company to pay? Bingo - Cash!

With my Network - qualified members can have their medical expenses financed through a partnership with a certain lender and the establishment of an HRA. I've seen members approved with a FICO as low as 400 if they have steady employment or decent collateral.

But - I'm not really in this biz anymore - but it is a good deal for the consumer if they get with the right Discount Card Network.

Tom

I hear your sales pitch but how many doctors are running network discounts at the time of service?

 

[somarco]

PHCS allegedly has (is going to have?) the ability to do on the spot repricing for some services. I recall seeing a press release on this some time ago. Not sure if it ever happened or how many doc's have the software to determine immediate repricing.

Haven't heard of any other networks touting this benefit.

There are sales pitches and there is the truth.

Sometimes the two are not even in the same universe.

 

[myinsurebiz]

#1 - I do have a problem with the discount cards. The discount cards are often MLM,

#2 - . . . are often not accepted by many doctors around here,

#3 - . . . and are often quite high for the benefits,

#4 - . . . and are often misleading to the consumer who thinks he is buying insurance.

#5 - I do not care how many times the sales agent says it is not insurance, I don't care what it says on the card, the consumer is easily mislead. Call the consumer stupid, I don't care what you say about the consumer, but I think the person or company who is put in the position to mislead the consumer- is wrong for doing it.

1) So what? MLM is just a distribution vehicle. Ignorance is bliss they say . . .

2) Check the PPO provider directory in your area. If your vendors are in the directory - buy the card. If they aren't - don't! It's as simple as that . . .

3) What? $49 a month is a steal. You get much more than medical savings with some programs (hint hint).

4) If the customer doesn't understand english, can't read the disclaimers - then they shouldn't be making decisions for themselves anyway . . .

5) Yep - the customer is stupid - see #4 above . . .

I hear your sales pitch but how many doctors are running network discounts at the time of service?

Everyone in my network does. The doctors or vendors don't do the repricing - the TPA does! This is accomplished via a simple web based portal or if the vendor is stuck in the 50's - via the telephone.

#1 - PHCS allegedly has (is going to have?) the ability to do on the spot repricing for some services. I recall seeing a press release on this some time ago. Not sure if it ever happened or how many doc's have the software to determine immediate repricing.

Haven't heard of any other networks touting this benefit.

Bob - see my response above.

Tom

 

[moonlightandmargaritas]

1) So what? MLM is just a distribution vehicle. Ignorance is bliss they say . . .

You should sell it at flea markets, Billy Mays style...

I'll bet you'd be good at that.

 

[HomeService]

One other aspecct I would like to bring up is the cheese factor. It's kind of cheesey {read sleazey, rhymes with}
to offer some sort of discount card that is distributed through MLM. Kind of cheesey. Slightly.

 

[Crabcake Johnny]

You should sell it at flea markets, Billy Mays style...

I'll bet you'd be good at that.

cardboard signs on poles would be another one. You always attract the brightest people with that kind of marketing.

 

[somarco]

With my Network - qualified members can have their medical expenses financed through a partnership with a certain lender and the establishment of an HRA.

I presume this is an employer plan . . . since HRA money is employer contributions only.

And FWIW, I do understand how repricing works, regardless if it is part of a discount plan or insured plan. I can't say the same for others . . .